The Rise of Foreign Investment in China's Banks: Taking Stock

 
Author/Editor: Leigh, Lamin ; Podpiera, Richard
 
Publication Date: December 01, 2006
 
 
Summary: The recent wave of foreign investment in China's banks and the prospects of further opening of the banking sector under the WTO agreement suggest that foreign banks are likely to play an increasingly important role in China. This paper takes stock of the involvement of foreign banks in the Chinese banking sector in the perspective of international experience. While in most other countries foreign bank entry took the form of direct takeover or majority shareholding, foreign investments in China's banks have been minority shareholdings with very limited management involvement. The paper concludes that China appears to be well positioned to benefit from further opening of the banking sector to foreign investors. International experience suggests that greater competition from and participation of foreign banks can in general bring important benefits if appropriate incentives and sufficient opportunities are created.
 
Subject(s): Foreign investment | China | Banks | Bank reforms | World Trade Organization | China, People's Republic of

Author's Keyword(s): Foreign investment | China | banks | WTO | banking reforms
 
English
Publication Date: December 01, 2006
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2006292 Pages: 14
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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