Money and Banking: Banking System Overview

Central Bank

 The People's Bank of China (PBC) is the central bank of China and is responsible for formulating and implementing monetary policy, regulating financial institutions, and issuing and managing the country's currency, the renminbi.

Regulated by: People's Bank of China (PBOC)

Services typically offered by the central bank include:

• Manage monetary policy
• Regulate national currency (CNY)
• Ensure financial system stability

Examples: People's Bank of China (PBOC)

Commercial Banks

There are four large state-owned commercial banks in China, which are Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), Agricultural Bank of China (ABC), and Bank of China (BOC). These banks offer a wide range of financial services, including deposit accounts, loans, credit cards, foreign exchange transactions, and money transfers.

Regulated by: China Banking and Insurance Regulatory Commission (CBIRC)

Services typically offered by commercial banks include:

• Deposits
• Loans
• Foreign exchange
• Investment services

Examples: Industrial and Commercial Bank of China (ICBC), China Construction Bank, Bank of China

Investment Banks

In China, investment banks are typically referred to as securities firms. These firms provide underwriting services for securities offerings, investment banking advisory services, and securities trading services.

Regulated by: CBIRC

Services typically offered by investment banks include:

• Advisory
• Underwriting for mergers and acquisitions
• Debt and equity issuances
• Asset management
• Securities trading

Examples: China International Capital Corporation (CICC), China Merchants Securities, CITIC Securities, Haitong Securities

Retail Banks

Retail banks in China offer banking services to individuals and small businesses. These banks provide various services, including deposit accounts, loans, credit cards, and money transfers.

Regulated by: CBIRC

Services typically offered by retail banks include:

• Basic deposit 
• Loan services
• Debit and credit cards
• Online and mobile banking

Examples: China Merchants Bank, Ping An Bank, Shanghai Pudong Development Bank, China Minsheng Bank

Foreign Banks

Foreign banks operating in China are required to establish a subsidiary or a branch office in the country. These banks offer financial services to both corporate and individual clients.

Regulated by: Both home country and China regulations

Services typically offered by foreign banks include:

• Basic deposit 
• Loan services
• Debit and credit cards
• Online and mobile banking

Examples: Citibank China, HSBC China, Standard Chartered China

Credit Unions

Credit unions in China are typically referred to as rural credit cooperatives. These institutions provide banking services to individuals and small businesses in rural areas of the country. They offer services such as deposit accounts, loans, and money transfers.

Regulated by: CBIRC

Services typically offered by credit unions include:

• Savings and loans
• Insurance
• Other financial products

Examples: China Minsheng Banking Corp., Ltd., Beijing Rural Commercial Bank

Savings and Loan Associations

Savings and loan associations in China are known as housing provident fund management centers. These institutions offer savings accounts and loans to individuals and families for housing-related purposes.

Regulated by: CBIRC

Services typically offered by savings and loan associations include:

• Mortgage loans
• Savings and deposit accounts

Examples: China Construction Bank Mortgage Co., Ltd., Industrial Bank Co., Ltd.

Online Banking

Online banking has become increasingly popular in China, with many banks offering digital services such as online account management, mobile banking, and online payment services.

Regulated by: CBIRC

Services typically offered by online banking include:

• Account management
• Bill payments
• Money transfers
• Investment services

Examples: Offered by most commercial and retail banks in China

Other Financial Institutions

Other financial institutions in China include insurance companies, trust companies, and leasing companies. These institutions offer various financial services, including insurance products, trust and wealth management services, and equipment leasing services.

Regulated by: China Securities Regulatory Commission (CSRC), China Insurance Regulatory Commission (CIRC)

Services typically offered by other financial institutions include:

• Micro-loans
• Leasing arrangements
• Insurance products

Examples: China Development Bank, Industrial and Commercial Bank of China Financial Leasing Co., Ltd., China Life Insurance Company, China Trustee Association

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