Challenges of Network Governance at the State Banks of China

The large state banks of China-the Bank of China, China Construction Bank, and Industrial and Commercial Bank of China-dominate China's financial sector. Reform of these banks has been a major policy effort of China's government because their financial weaknesses exert a drag on the econom...

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Bibliographic Details
Published in:The Journal of contemporary China 2012-05, Vol.21 (75), p.481-498
Main Authors: Levy, Tal, Meyer, David R.
Format: Article
Language:English
Subjects:
Banking
Banking system
Central banks
China
Chinese
Competition
Corporate governance
Corruption
Experts
Governance
International finance
Loans
Networks
Nonperforming loans
Peoples Republic of China
Public finance
Reform
Reforms
State
State banks
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Summary:The large state banks of China-the Bank of China, China Construction Bank, and Industrial and Commercial Bank of China-dominate China's financial sector. Reform of these banks has been a major policy effort of China's government because their financial weaknesses exert a drag on the economy. This reform has led to significant improvements in the large state banks. Nevertheless, they face three recurring problems: limited access to expert knowledge about international finance, non-performing loans, and corruption. These problems are rooted in the network governance of the banks. The Chinese government needs to continue transforming this governance to make the large state banks globally competitive.
ISSN:1067-0564
1469-9400
DOI:10.1080/10670564.2011.647436