Trends In Chinese Banking Sector Reforms

The Chinese Government started out reforming the banking sector drastically in 2005 by allowing Shanghai based Lender of Communications ("BCom") list on the Hong Kong STOCK MARKET.

BCom was a pathfinder in the reform as HSBC, one of many UK's major financial groups was permitted to become its biggest international shareholder holding forget about 20% of its shares, the most significant percentage allowed under Chinese laws for foreign interests.

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Commercial Banking

A commercial bank's principal liabilities happen to be deposits and primary possessions will be loans and bonds. According to the U.S. Banking Work of 1971, the "business bank" can be an institution that gives demand deposits and originates loans." Therefore, a funds market mutual fund isn't a commercial bank since it will not originate loans. In the same way a finance company can be not really a commercial bank since it will not offer demandable deposits. The word "commercial" distinguishes a professional bank from an expense bank.

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