Can Chinese banks compete after accession to WTO? Export

@article{citeulike:2022315, abstract = {Our answer is no, not at least without fundamental changes on the roles of Chinese banks and on the current unfavourable bank regulations towards domestic banks. As a result of China's accession to World Trade Organization (WTO), foreign banks could compete directly with Chinese banks with little barriers from December 2006. We argue that foreign banks' expertise and experience in modern banking activities coupled with their interests and regulatory advantages in the traditional Renminbi (RMB) business will lead to a loss of RMB deposits and loans from local banks. Given that Chinese banks are currently ridden with large non-performing loans and low capital adequacy, the foreign bank entry will exert further pressure on the banks' profitability and solvency. It is likely that the health of Chinese banks will deteriorate further in the post-WTO era.}, author = {Xu, Lei and Lin, Chien-Ting}, citeulike-article-id = {2022315}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/j.asieco.2007.09.001}, citeulike-linkout-1 = {http://www.sciencedirect.com/science/article/B6W53-4PP775K-2/2/d6f865519680c653e97f71d32e54550c}, doi = {10.1016/j.asieco.2007.09.001}, journal = {Journal of Asian Economics}, keywords = {banking, china}, month = {December}, number = {6}, pages = {883--903}, posted-at = {2007-11-30 06:26:56}, priority = {2}, title = {Can Chinese banks compete after accession to WTO?}, url = {http://dx.doi.org/10.1016/j.asieco.2007.09.001}, volume = {18}, year = {2007} }

TY - JOUR ID - citeulike:2022315 L3 - citeulike-article-id:2022315 N2 - Our answer is no, not at least without fundamental changes on the roles of Chinese banks and on the current unfavourable bank regulations towards domestic banks. As a result of China's accession to World Trade Organization (WTO), foreign banks could compete directly with Chinese banks with little barriers from December 2006. We argue that foreign banks' expertise and experience in modern banking activities coupled with their interests and regulatory advantages in the traditional Renminbi (RMB) business will lead to a loss of RMB deposits and loans from local banks. Given that Chinese banks are currently ridden with large non-performing loans and low capital adequacy, the foreign bank entry will exert further pressure on the banks' profitability and solvency. It is likely that the health of Chinese banks will deteriorate further in the post-WTO era. IS - 6 JF - Journal of Asian Economics EP - 903 TI - Can Chinese banks compete after accession to WTO? VL - 18 SP - 883 KW - banking KW - china AU - Xu, Lei AU - Lin, Chien-Ting PY - 2007/12// UR - http://dx.doi.org/10.1016/j.asieco.2007.09.001 ER -