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Banking Sector Reform and Credit Control in China
Banking Sector Reform and Credit Control in China Author:Organization for Economic Co-operation and Development, Eric Girardin Using data provided by the People's Bank of China, the author analyzes the structure of the Chinese banking system, taking into account the changes which have taken place as part of the reform programme launched in the 1980s. He finds that the emergence of non-bank financial institutions has been a key element in the financing of small ... more »and medium enterprises, but that their role needs to be strengthened to make them into real competitors for the state banking sector. Professor Girardin finds that the further development of the financial system is hindered by the rigidity of state enterprises and their lack of sensitivity to market requirements. He recommends that the financial sector in China be further reformed to make more efficient use of the abundant amounts of savings which has made the impressive growth of China possible in recent years. Prof. Girardin is with the University of Bordeaux« less