Chinese banking system serves as government policy instrument
Ritola, Maria (08.11.2010)
JulkaisusarjaBank of Finland. Financial Market Report
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201408074864
China s huge financial sector is heavily banking-oriented. The size of the banking business is illustrated by the lending stock of Chinese banks: in 2009 it exceeded the country's GDP by ca 20%. The Chinese banking sector is especially large compared to countries of the same level of economic development whose lending stocks relative to GDP are on average less than half of that of China. The special nature of the Chinese banking sector is emphasized by its key role as the government s economic policy instrument, exemplified by the stimulus package introduced during the global economic crisis and implemented primarily by increasing lending by the largest banks.