Consequences of the Globalization and the Entry to the WTO on the Reform of the Chinese Financial Sector

Abstract

This dissertation provides the theoretical and empirical study on the reconstruction of the bank industry worldwide, and makes some conclusions pertinent to the consequence of the globalization and the entry to the WTO on the reform of the Chinese bank sector. This dissertation exhibits, with the development of the economy; the bank will still keeps its special functions and development. However, what should be noted here is, the bank industry has been evolving itself over time. By analyzing the transformation of bank industry in USA and in Germany respectively, this paper finds out, the banks are more and more entering into the security and non-traditional business fields. However, according to the empirical results, the bank regulators might not have to worry about the systematic financial risk brought about by the involvement in security business. In contrast, the regulators should pay more attention on how to balance the different interests between the shareholders and the consumers. Furthermore, given the changed economic and financial situation, this dissertation also paid close attention on the transformation of the bank regulation system worldwide. Eventually, drawing on the experience from the advanced markets, this dissertation takes a step further to the Chinese bank reform and shows us, now Chinese bank industry are confronting five biggest obstacles. Meanwhile, the old reform approaches have made the causality between the bad performance of the banks and the NPL (Non Performing Loans) upside down. In order to reform the Chinese bank industry, a systemic reconstructing plan is also available in this dissertation