China`s Banking System - Set For A Makeover

Released on = August 31, 2006, 1:49 am

Press Release Author = RNCOS

Industry = Financial

Press Release Summary = State banks, constituting 75 % of the total financial
assets, largely dominate China Banking Sector. However, declining non-performing
loans, show light at the end of the tunnel.

Press Release Body = China Banking Sector has emerged from the under shackles of
communism like a phoenix vowing a complete reversal from the trend of ‘policy
lending’. So long China’s banking model has been starkly different from
that observed in most parts of the world. Instead of calculating investment and
expenditure incurred by savings at the market-governed interest rates, China Banking
Sector has been gathering savings from individuals and channelising them to Party
priorities. Presently, non-performing loans (NPLs) constitutes more than 20 % of the
outstanding loans for the overall banking sector, a fallout of the planned economic
model.

However, a fresh gust of change is perceptible in the Banking Sector market in
china. Banking Regulatory Commission of china affirms that the share of NPLs for
domestic banks was marked at 19.7 % in June 2005, a decrease of 3.52 % points at the
beginning of the year.

RNCOS’ recent market research report,” China Banking Sector Analysis
(2006-2009)”, talks about the reforming face of banking sector vis-à-vis the
opportunities and challenges in future.

Analysts assert that –“ the NPL (non-performing loan) rate of major
commercial banks in China fell from 17.9 % at the end of 2003 to 8.9 % at the end of
2005. At the end of 2005, the NPL rate for city commercial banks had fallen nearly 4
% to 7.73 %”.

The key highlights of the report are:

- The Opportunities and Challenges in Banking Industry In China
- The competitive market landscape of China Banking Industry
- The factors driving the Banking Industry in China
- The prospective areas of investment for China Banking Sector
- The effect of personalized loans, demographic factors and demands by social
classes on the Banking Sector Market

This report will provide assistance in analyzing the leading opportunities that are
critical to the achievement of the Banking Industry in China.

About RNCOS:

RNCOS, incorporated in 2002, provides Market Research Reports for your business
needs and aims to put an end to your information pursuit. Our expertise in gathering
global business information for industry research, corporate training, growth
consulting, and business consulting, brings reputed companies and firms to us for
business enhancement solutions. We can be your one-stop-shop for Industry research
information and niche market analysis.

To purchase your copy: http://www.rncos.com/Report/IM056.htm
For more information about the report please visit www.rncos.com


Web Site = http://www.rncos.com

Contact Details = RNCOS
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial area, Delhi 92
91-11-4214-1229
info@rncos.com

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