China's banking system faces the kinds of challenges being
grappled with by bankers worldwide - except that the sheer size of
its industry presents a new level of complexity. The analogy of the
oil tanker that needs a lot of space and time to change course is
particularly apt in China's case.
And the task is made more daunting still by the need to get reform
in place before World Trade Organization rules come into force,
thereby opening up the market to a wave of international banks with
massive experience and powerful brands.
The timeframe for the PRC's entry is still hazy, although most
commentators are reckoning on the end of this year. Nevertheless it
has focused the minds of bankers and regulators to a sufficient
degree for a raft of new rules to be issued in an attempt to
strengthen balance sheets and clean up institutions ready for the
arrival of international competition. ...
