Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Table of contents
Foreword
Executive summary
Market environment
27
Performance
47
Peer review
53
Appendices
60
Methodology
62
Bank groups
63
Participants
64
65
75
76
92
Partners in success
93
RECOVERABLE
MATERIAL
Foreword
Mervyn Jacob
Financial Services Leader for
China and Hong Kong
Hong Kong
May 2007
Executive summary
Background
ABN AMRO
Maybank
Bank of America
Bank of Montreal
Bank of Nova Scotia
BNP Paribas S.A.
KBC Bank
Calyon
Citibank
DBS
Deutsche Bank
Shinhan Bank
Dresdner Bank
Socit Gnrale
Fortis Bank
Wachovia Bank
UBS
Wing Lung Bank
Main findings
Staffing issues
Human resources along with
regulations are the two most
pressing issues. The rapid growth
in personnel needs over the next
three years will fuel an already tight
labour market. Annual turnover
rates are high, 35% of the banks
recorded a rate of 15% to 20%
and over two thirds were above
15%. Significant salary inflation is
widespread.
Brand recognition
Brand name recognition was
highlighted as a growing concern
as a number of banks plan to gear
up for the retail market.
Domestic bank challenges
The foreign banks continue
to believe that their domestic
counterparts face on-going
challenges in the domestic loan
market and in governance and
market related practices. No
improvements in their perceptions
of these areas have been made
since the 2005 survey.
Continued opportunity
Future growth
Performance
Product development
Credit cards, followed by
investment products and
mortgages are forecasted to grow
strongly in the retail market. In the
wholesale market the top three
areas of growth mentioned were
interest rate and currency swaps
and structured products.
First
Second
Third
Citibank
HSBC
Standard Chartered
Treasury
Citibank
HSBC
Standard Chartered
Derivatives
Citibank
HSBC
Deutsche Bank
Corporate lending
HSBC
Citibank
Standard Chartered
Project financing
Citibank
HSBC
BNP Paribas
Investment banking
Goldman Sachs
Morgan Stanley
Citibank
Asset management
HSBC
UBS
Citibank
Corporate finance
Citibank
Goldman Sachs
HSBC
Morgan Stanley
Goldman Sachs
Citibank
Trade finance
HSBC
Standard Chartered
Fortis
Retail banking
HSBC
Citibank
Standard Chartered
Citibank
HSBC
Standard Chartered
Credit cards
Market environment
Background profile
35
30
25
Number
of banks
2007
20
2005
15
10
er
id
th
rd
pr
ov
er
nk
ba
it
re
d
Pr
iv
ic
ca
e
at
he
ba
nk
in
in
ng
ki
al
an
na
tio
itu
in
st
an
il
or
po
ra
te
&
ta
Re
lb
er
ci
m
m
co
en
m
st
C
or
po
ra
te
&
in
ve
Tr
a
de
tb
fin
an
an
ki
ci
ng
ng
Number of employees
50-100
100+
Retail customers
Local incorporation
Approved:
Citibank
HSBC
Standard Chartered Bank
The Bank of East Asia
Applications in process:
ABN AMRO
Bank of Tokyo-Mitsubishi - UFJ
DBS
Hang Seng Bank
JPMorgan Chase
Mizuho Bank
OCBC
Wing Hang Bank
Ten of these 12 banks plan to
locate their head office in Shanghai
while JPMorgan Chase will locate
in Beijing and Wing Hang Bank in
Shenzhen.
CBRC has confirmed applications
are being considered for:
Nanyang Commercial Bank
Citic Ka Wah Bank
United Overseas Bank
10
17% 33%
Intensive
8%
Light
None
33%
Competition
Moderate
8%
Response
No change
Minor
change
Significant
operational
and organisational
change
Fundamental
change in
strategy and
positioning
3%
6%
Moderate
6%
18% 18%
15%
9%
Competition
Intensive
None
12%
6%
9%
Response
No change
Minor
change
Money market
Money market
Light
Retail banking
Significant
operational
and organisational
change
Fundamental
change in
strategy and
positioning
11
13%
3%
25%
6%
Moderate
9%
19% 13%
3%
None
6%
Competition
Light
3%
Response
No change
Minor
change
Significant
operational
and organisational
change
Fundamental
change in
strategy and
positioning
Trade finance
Trade finance
Intensive
8%
Light
None
17% 11%
Response
No change
Minor
change
Significant
operational
and organisational
change
Fundamental
change in
strategy and
positioning
Competition
Moderate
3%
12
Treasury
Treasury
18%
6%
6%
3%
Moderate
9%
18% 30%
3%
Light
3%
3%
None
Competition
Intensive
Response
No change
Minor
change
Significant
operational
and organisational
change
Fundamental
change in
strategy and
positioning
Corporate lending
Corporate lending
Intensive
6%
Light
None
21%
9%
Response
No change
Minor
change
Significant
operational
and organisational
change
3%
Competition
Moderate
6%
Fundamental
change in
strategy and
positioning
13
Investment banking
Investment banking
Intensive
19%
Light
None
Competition
Moderate
5%
5%
5%
Response
No change
Minor
change
Significant
operational
and organisational
change
Fundamental
change in
strategy and
positioning
Credit cards
25% 25%
Moderate
25%
Light
None
25%
Competition
Intensive
Credit cards
Response
No change
Minor
change
Significant
operational
and organisational
change
Fundamental
change in
strategy and
positioning
14
Bank of China
ICBC
China Construction Bank
Agricultural Bank of China
China Merchants Bank
Bank of Communications
China Minsheng Bank
Shanghai Pudong Development Bank
CITIC Bank
Bank of Beijing
Huaxia Bank
Guangdong Development Bank
Bank of Shanghai
China Everbright Bank
Industrial Bank
Shenzhen Development Bank
15
12
10
10
8
Number of
banks
7
6
10
16
Regulatory issues
The bankers continued to express
concern about the level and nature
of regulation. They indicated that
regulation was multi-layered and
often lacked a clarity of coordination.
They reported a lack of coordination between SAFE
(State Administration of Foreign
Exchange) and CBRC and
suggested different CBRC
offices provided contrasting
interpretations.
Senior management in the big
banks
Currency controls
17
18
200
150
Score
2007
2005
100
50
Re
gu
la
to
C ry c
ap h
ita an
g
l
G ma es
lo rk
ba e
Ec
lis ts
T
M on ec ati
er om h on
n
ge
rs ies olo
/
o
Jo co f gy
in ns sc
tv o a
e li le
C ntu dat
om r
e io
m ba n
o
n
Se ditis ks
cu at
rit ion
O
is
th
at
er
io
ne
n
Di w Ot
si
h
nt ent er
er ra
m nt
ed s
ia
tio
n
19
More difficult
Regulatory environment
Finding and retaining good personnel
2007
2005
Less difficult
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
increasing difficulty
2.0
20
Credit monitoring
Collecting NPLs
Reliance on collateral
Governance
Independence of directors
Lack of disclosure
Market practice
5
21
2007
2007
2005
2005
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
22
Reputational risk
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
Market risk
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
Credit risk
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
23
Regulatory risk
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
Business/strategic risk
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
Operational risk
Fraud risk
Liquidity risk
Currency risk
24
Legal risk
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
IT/technology risk
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
Treasury/liquidity planning
Governance risk
Greatest threat
Extremely effective
Major threat
Effective
Minor threat
Ineffective
Not a threat
Extremely ineffective
Political risk
Greatest threat
Major threat
Minor threat
Not a threat
25
Less than 5%
5 to 10%
10 to 15%
15 to 20%
20 to 30%
30 to 40%
40% or above
35% recorded 15% to 20% turnover
Over two-thirds were above 15%
26
Yes
No
100%
Yes
28
10
10
12
11
10
8
Number of
banks
Number of
banks
6
4
4
3
2
4
2
10
th
an
Le
ss
15
-1
24
20
-
9
25
-2
30
50
n
th
a
M
or
e
10
0
an
10
0
M
or
15
e
th
0
an
20
0
M
or
e
th
90
85
80
75
70
65
29
30
25
20
RMB
Number of
banks
Foreign currency
15
10
uc
ts
pr
od
ct
ai
l
pr
od
u
re
t
er
th
tp
ef
fe
c
en
Ta
x
tm
ve
s
in
Le
ve
ra
ge
d
tiv
e
ro
d
ag
e
tg
M
or
es
In
v
uc
ts
s
ct
pr
od
u
tm
en
t
re
d
it
ca
rd
s
30
30
25
20
Number of
banks
RMB
Foreign currency
15
10
In
te
r
ro est
ss
ra
cu te
sw
r
St
r
ru enc ap
s
ct
y
sw
De ur
e
a
b
d
pr ps
Eq t c
ui api od
u
ty ta
ca l m cts
pi ar
O
ta k
nl
l m et
in
e
Se
ar s
Eq
t
r
H
ke
a
c
ui
n
y
u
ts
b
s
ty
rit
is
ca rid act
at
fin ion
pi
i
on
ta
a
l m nc s sy
st
an ing
ag
te em
s
em ch
en niq
ue
ts
Pe
s
ol
u
rfo
rm NP tion
s
in L t
r
g
lo adi
an ng
tra
di
ng
31
32
33
Other (2)
Transactional &
custodial services (11)
Derivatives (24)
Foreign
exchange (31)
Funds
management (6)
Credit card
marketing (1)
Residential
mortgages (3)
34
Asian banks
Levels of success
Other (1)
Transactional &
custodial services (4)
Money market
activity (8)
Securities
trading (3)
Foreign
exchange (11)
Funds
management (2)
Credit card
marketing (0)
Retail
deposits (4)
Residential
mortgages (2)
Consumer
loans (1)
2007
2005
Global corporates, derivatives and transactional &
custodial services are new categories in 2007
35
European banks
Levels of success
Transactional &
custodial services (4)
Other (0)
4
3
lending (13)
Global corporates (12)
Derivatives (14)
Money market
activity (13)
Securities
trading (3)
Foreign
exchange (15)
Funds
management (3)
Internet banking (2)
Retirement
products (2)
Transaction
services (2)
Retail
deposits (2)
Credit card
marketing (0)
Residential
mortgages (1)
Consumer
loans (1)
2007
2005
Global corporates, derivatives and transactional &
custodial services are new categories in 2007
36
Other (1)
Transactional &
custodial services (3)
Trade finance (7)
Money market
activity (5)
Securities
trading (3)
Foreign
exchange (5)
Credit card
marketing (1)
Retirement
products (1)
Retail
deposits (1)
Residential
mortgages (0)
Consumer loans (0)
2007
2005
Global corporates, derivatives and transactional &
custodial services are new categories in 2007
37
Derivatives (29)
Money market
activity (30)
1
SME
lending (24)
Securities
trading (18)
Foreign
exchange (34)
Credit card
marketing (11)
Residential
mortgages (15)
Consumer
loans (15)
Funds
management (15)
Internet banking (15)
Retirement products (10)
Transaction
services (12)
Retail
deposits (18)
2007
2005
38
Future importance
Asian banks
Other (0)
Transactional &
custodial services (7)
Trade finance (13)
Money market
activity (12)
Derivatives (9)
Securities
trading (7)
SME
lending (12)
Foreign
exchange (12)
Funds
management (7)
Credit card
marketing (6)
Internet
banking (9)
Retirement
products (5)
Transaction
services (7)
Residential
mortgages (9)
Consumer
loans (9)
Retail
deposits (11)
2007
2005
Global corporates, derivatives and transactional &
custodial services are new categories in 2007
39
Future importance
European banks
Other (0)
Transactional &
custodial services (4)
Trade finance (15)
Money market
activity (12)
SME
treasury (12)
1
Securities
trading (7)
SME
lending (10)
High net worth
individuals (7)
Foreign
exchange (15)
Credit card
marketing (4)
Funds
management (4)
Residential
mortgages (5)
Retail
deposits (5)
2007
2005
Global corporates, derivatives and transactional &
custodial services are new categories in 2007
40
Future importance
North American banks
Transactional &
Custodial services (3)
Global
corporates (4)
3
Derivatives (5)
Money market
activity (6)
2
SME
treasury (3)
1
Securities
trading (4)
SME
lending (2)
High net worth
individuals (3)
Foreign
exchange (7)
Credit card
marketing (1)
Funds
management (4)
Residential
mortgages (1)
41
European banks
North American
banks
All banks
2007
2010
2007
2010
2007
2010
2007
2010
Credit cards
10
Mortgages
12
Term deposits
12
14
Internet banking
11
Private banking
11
14
SME lending
11
14
Bonds
11
10
18
Treasury/FX/money market
10
14
15
28
31
Corporate banking
10
11
15
16
29
31
Project financing
10
12
19
22
Investment banking
10
13
20
25
Corporate finance
11
18
23
Trade finance
10
10
15
16
31
33
Correspondent banking
10
11
21
23
Wealth management
Funds management
12
Retail banking
Wholesale banking
42
2005 2007
No
Yes
Regulatory change
Product changes
Increasing customer demands
Increasing competition
Parent bank strategy changes
State of the economy
Other
5
10
15
Number of banks
20
25
43
No
Yes
44
Number of
banks
2007
2005
ba
nk
an
Pa
ci
e
a
rtn
w
le
a
ith
no
er
nt
ity
n
a
w
ith
B
ba
ig
nk
an
4
fin
H
ba
K,
an
nk
ci
Ta
al
iw
in
Pa
an
s
tit
,S
rtn
ut
in
er
io
ga
w
n
p
ith
or
an
ea
ot
n
ba
he
rf
nk
or
ei
gn
ba
nk
Pa
fin
rtn
er
ne
w
Pa
a
e
C
re
at
C
re
at
rtn
er
w
ith
jo
in
ts
to
ck
co
m
rg
an
i
m
er
ci
al
gr
ow
th
45
Q On a scale of 1 to 5, where
5 represents greatest
importance, if you were to
choose a joint venture how
important would the following
concerns be to your bank in
China?
Ability to exercise
management control
Protection of
foreign investors rights
Ability to increase stake in
domestic financial institutions
Ability to leverage
JV involvement
Ability to build in
exit mechanisms
2007
Ability to integrate
non bank financial services
2005
Maximum score is 5
Based on responses from 35 banks in 2007
and 35 banks in 2005
46
Performance
100
Percentage
growth
80
60
2007
2010
40
20
Ba
n
Ba k 1
n
Ba k 2
nk
Ba 3
n
Ba k 4
n
Ba k 5
nk
Ba 6
n
Ba k 7
nk
Ba 8
Ba nk
n 9
Ba k 1
n 0
Ba k 1
n 1
Ba k 1
n 2
Ba k 1
nk 3
Ba 1
n 4
Ba k 1
n 5
Ba k 1
n 6
Ba k 1
n 7
Ba k 1
nk 8
Ba 1
n 9
Ba k 2
nk 0
Ba 2
n 1
Ba k 2
n 2
Ba k 2
nk 3
Ba 2
n 4
Ba k 2
nk 5
Ba 2
n 6
Ba k 2
nk 7
Ba 2
n 8
Ba k 2
n 9
Ba k 3
n 0
Ba k 3
n 1
Ba k 3
nk 2
Ba 3
n 3
Ba k 3
n 4
Ba k 3
nk 5
Ba 3
nk 6
37
48
2007
As expected
2005
Based on responses from 34 banks in 2005
and 38 banks in 2007
As present
2005
2007
49
Bank profitability in
a number of different
segments over the last year
Loss <0%
Retail banking
Corporate banking
Investment banking
Wealth management
Life insurance
Very
profitable
20-30%
Extremely
profitable
>30%
Treasury
Credit cards
Profitable
10-20%
Private banking
Internet banking
Marginally
profitable
0-10%
Individual banks
50
To Chinese-based
corporates
To global
corporates
To home country
corporates
Asian bank
10
60
20
Asian bank
80
10
Asian bank
20
Asian bank
20
Asian bank
10
55
35
Asian bank
60
20
15
To Chinese
banks
To foreign
banks
Other
10
100
48
24
Asian bank
90
10
80
100
5
100
100
100
Asian bank
10
30
50
Asian bank
10
15
65
10
Asian bank
40
Asian bank
22
European bank
10
40
European bank
20
80
European bank
90
European bank
10
European bank
40
40
European bank
10
60
20
European bank
20
60
20
European bank
25
55
15
30
10
European bank
45
70
20
15
10
100
100
100
10
100
100
15
100
100
100
90
100
10
8
10
2
100
100
100
100
100
100
European bank
60
European bank
50
20
European bank
90
European bank
90
European bank
34
12
European bank
100
100
100
5
Total
100
10
80
Asian bank
Asian bank
100
30
100
5
100
100
35
14
100
100
100
European bank
50
25
20
100
European bank
15
45
20
20
100
100
30
35
10
50
25
25
60
20
100
20
100
10
100
60
25
15
100
100
100
100
51
Retail
banking
Bank 1
30
Bank 2
10
Mortgages
Term
deposits
SME
lending
Wholesale/
investment
banking
Bonds
Treasury/
FX/money
market
Corporate
banking
30
Investment
banking
Corporate
finance
Trade
finance
20
10
30
90
10
Corresp.
banking
Wealth
management
70
10
100
100
90
Bank 5
Total
100
Bank 3
Bank 4
Project
financing
10
10
20
Bank 6
10
50
Bank 7
30
Bank 8
50
Bank 9
100
5
25
30
10
15
100
10
30
100
20
50
100
25
100
80
20
100
70
10
100
Bank 11
70
10
10
100
Bank 12
10
80
Bank 13
20
20
30
45
Bank 10
Bank 14
30
Bank 15
25
10
10
10
100
60
100
70
Bank 16
10
100
100
80
10
Bank 17
20
Bank 18
30
10
25
100
40
50
100
25
100
Bank 19
10
50
40
100
Bank 20
30
40
30
100
Bank 21
90
Bank 22
20
80
Bank 23
30
20
Bank 24
10
30
Bank 25
Bank 26
100
100
40
10
10
30
80
30
50
35
25
25
Bank 28
15
Bank 29
60
40
30
60
Bank 30
Bank 31
5
5
10
30
Bank 33
50
100
80
100
100
5
100
100
10
10
90
Bank 34
4
100
10
100
90
100
100
15
95
Bank 32
Bank 35
100
15
Bank 27
100
20
100
100
100
A further five areas were included in this question: credit cards, internet banking, transaction and custody services, SME venture capital and private banking. However the respondents reported no revenue in any of
these areas. As a result the columns have been eliminated.
52
Peer review
Foreign exchange
First
Second
Third
Score
Change
Citibank
13
11
62
HSBC
11
50
Standard Chartered
13
21
Deutsche Bank
15
ABN AMRO
JPMorgan Chase
Mizuho Bank
2
1
UBS
Socit Gnrale
BOTM UBJ
Bank of Montreal
Based on 28 banks
Treasury
First
Second
Third
Score
Change
Citibank
12
53
HSBC
10
42
Standard Chartered
16
Deutsche Bank
11
JPMorgan Chase
10
ABN AMRO
Bank of Montreal
BOTM UBJ
Lehman Brothers
Based on 26 banks
54
Derivatives
First
Second
Third
Score
Citibank
11
40
HSBC
24
Deutsche Bank
18
JPMorgan Chase
Socit Gnrale
ABN AMRO
Goldman Sachs
12
Standard Chartered
UBS
BNP Paribas
Credit Suisse
Sumitomo Bank
3
2
Merrill Lynch
BOTM UFJ
Morgan Stanley
RBOS
Based on 24 banks
New category in 2007 therefore no change
Corporate lending
First
Second
Third
Score
Change
HSBC
15
10
68
Citibank
10
45
Standard Chartered
10
38
BOTM UFJ
1
1
DBS
Deutsche Bank
Socit Gnrale
BNP Paribas
Based on 29 banks
55
Project financing
First
Second
Third
Score
Change
Citibank
10
40
HSBC
31
BNP Paribas
17
Socit Gnrale
17
14
Standard Chartered
Deutsche Bank
BOTM UFJ
ABN AMRO
Mizuho Bank
Calyon
1
1
DBS
Third
Score
Change
45
Based on 24 banks
Investment banking
First
Second
Goldman Sachs
13
Morgan Stanley
26
Citibank
15
JPMorgan Chase
15
UBS
12
HSBC
Third
Score
Change
11
Lehman Brothers
Merrill Lynch
1
1
Deutsche Bank
Standard Chartered
ABN AMRO
Based on 23 banks
Asset management
First
Second
HSBC
UBS
Citibank
JPMorgan Chase
ABN AMRO
Fortis
AIG
Deutsche Bank
Standard Chartered
Allianz Global
Investment
2
1
Based on 11 banks
Foreign banks in ChinaDate
PricewaterhouseCoopers
56
Corporate finance
First
Second
Third
Score
Change
Citibank
30
Goldman Sachs
15
HSBC
14
Deutsche Bank
ABN AMRO
Morgan Stanley
Standard Chartered
UBS
JPMorgan Chase
BOTM UFJ
BNP Paribas
Socit Gnrale
Bank of America
Based on 18 banks
First
Second
Third
Score
Change
Morgan Stanley
23
Goldman Sachs
22
Citibank
21
HSBC
JPMorgan Chase
UBS
ABN AMRO
Deutsche Bank
Merrill Lynch
Standard Chartered
Lehman Brothers
Based on 18 banks
57
Trade finance
First
Second
HSBC
13
Standard Chartered
Fortis
Citibank
BOTM UBJ
JPMorgan Chase
Third
5
5
Score
Change
49
33
17
17
DBS
ABN AMRO
ANZ Bank
ING
Nord Deutsche
Landesbank
Mizuho Bank
RZB
Sumitomo Mitsui
Deutsche Bank
Wachovia
Based on 27 banks
58
Retail banking
First
Second
Third
Score
Change
HSBC
15
62
Citibank
10
50
14
24
10
Standard Chartered
The Bank of East Asia
ABN AMRO
Based on 26 banks
Credit cards
First
Second
Citibank
HSBC
34
10
Standard Chartered
The Bank of East Asia
Third
Score
37
Based on 16 banks
New category in 2007 therefore no change
59
Appendices
60
Appendices
Methodology
62
Bank groups
63
Participants
64
65
75
76
77
92
61
Methodology
62
Bank groups
Bank groups
Shinhan Bank
Socit Gnrale
European banks:
ABN AMRO
UBS
Asian banks:
Calyon
Bank of America
Deutsche Bank
Bank of Montreal
Dresdner Bank
DBS
Fortis Bank
Citibank
HSBC
ING Bank
KBC Bank
Wachovia Bank
Maybank
Norddeutsche Landesbank
Rabobank
OCBC
Raiffeisen Zentralbank
Osterreich AG
63
Participants
City
Country/region
Name of bank
Shanghai
Beijing
Shanghai
Shanghai
Shanghai
Shanghai
Shanghai
Hong Kong
Hong Kong
Beijing
Beijing
Shanghai
Shanghai
Shanghai
Shanghai
Shanghai
Shanghai
Shanghai
Shenzhen
Hong Kong
Shenzhen
Shanghai
Shanghai
Tianjin
Tianjin
Tianjin
Shanghai
Shanghai
Shanghai
Shanghai
Shanghai
Shanghai
Beijing
Shanghai
Shanghai
Shanghai
Shanghai
Shanghai
Beijing
Shanghai
Australia
Austria
Belgium
Belgium
Britain
Britain
Britain
Canada
Canada
Canada
France
France
France
France
Germany
Germany
Germany
Hong Kong
Hong Kong
Hong Kong
Hong Kong
Italy
Japan
Korea
Korea
Korea
Malaysia
Netherlands
Netherlands
Netherlands
Singapore
Singapore
Switzerland
Taiwan
Thailand
USA
USA
USA
USA
USA
64
World ranking
The Banker, July 2006
Home country
ranking
Asian banks
Tier 1
Assets
Tier 1
Background comments
ANZ Bank
101 employees
www.anz.com
52
63
207
248
Business
Development Bank
80 employees
www.ibankunited.com
N/A
N/A
N/A
730
482
11
The background comments were taken from the respective banks websites in April 2007
65
World ranking
The Banker, July 2006
Home country
ranking
Asian banks
Tier 1
Assets
Tier 1
Background comments
N/A
N/A
N/A
N/A
N/A
N/A
Industrial Bank of
Korea
80 employees
www.ibk.co.kr
133
123
131
150
The background comments were taken from the respective banks websites in April 2007
66
World ranking
The Banker, July 2006
Home country
ranking
Asian banks
Tier 1
Assets
Tier 1
Background comments
Maybank
35 employees
www.maybank2u.com
136
188
Mizuho
Corporate Bank
800 employees
www.mizuhocbk.co.jp
10
OCBC
300 employees
www.ocbc.com.sg
112
130
Shinhan Bank
50 employees
www.shinhan.com
88
79
The background comments were taken from the respective banks websites in April 2007
67
World ranking
The Banker, July 2006
Home country
ranking
European banks
Tier 1
Assets
Tier 1
Background comments
ABN AMRO
1,500 employees
www.abnamro.com
15
13
BNP Paribas
150 employees
www.bnpparibas.com
24
Calyon
120 employees
www.calyon.com
Deutsche Bank
450 employees
www.deutsche-bank.de
23
12
The background comments were taken from the respective banks websites in April 2007
68
World ranking
The Banker, July 2006
Home country
ranking
European banks
Tier 1
Assets
Tier 1
Background comments
Dresdner Bank
55 employees
www.dresdner-bank.
com
44
29
Fortis Bank
80 employees
www.fortis.com
33
22
HSBC
3,000 employees
www.hsbc.com
ING Bank
42 employees
www.ing.com
22
16
KBC Bank
90 employees
www.kbc.com
45
42
The background comments were taken from the respective banks websites in April 2007
69
World ranking
The Banker, July 2006
Home country
ranking
European banks
Tier 1
Assets
Tier 1
Background comments
Natexis Banque
Populaire
45 employees
www.natixis.fr
36
46
Norddeutsche
Landesbank
20 employees
www.nordlb.de
85
60
11
Rabobank
40 employees
www.rabobank.com
20
25
RZB
61 employees
www.rzb.at
126
94
The background comments were taken from the respective banks websites in April 2007
70
World ranking
The Banker, July 2006
Home country
ranking
European banks
Tier 1
Assets
Tier 1
Background comments
Royal Bank of
Scotland
30 employees
www.rbs.com
46
49
The background comments were taken from the respective banks websites in April 2007
71
World ranking
The Banker, July 2006
Home country
ranking
European banks
Tier 1
Assets
Tier 1
Background comments
Socit Gnrale
110 employees
www.socgen.com
26
15
Standard Chartered
Bank
2,000 employees
www.standardchartered.
com
61
62
UBS
300 employees
www.ubs.com
18
The background comments were taken from the respective banks websites in April 2007
72
World ranking
The Banker, July 2006
Home country
ranking
Tier 1
Assets
Tier 1
Background comments
Bank of America
300 employees
www.bankofamerica.
com
Bank of Montreal
90 employees
www.bmo.com
49
55
95
104
19
38
54
The background comments were taken from the respective banks websites in April 2007
73
World ranking
The Banker, July 2006
Home country
ranking
Tier 1
Assets
Tier 1
Background comments
Citibank
2,000 employees
www.citibank.com
11
37
40
RBC employs approximately 70,000 full and parttime employees who serve more than 14 million
personal, business, public sector and institutional
clients through offices in North America and 34
countries. RBCs history in China began in 1954,
when it became the first Canadian bank to offer
financial services to China. In addition to the
branch in Beijing, RBC also has a branch in
Hong Kong.
Wachovia Bank
60 employees
www.wachovia.com
21
33
The background comments were taken from the respective banks websites in April 2007
74
Date
Chinese bank
Sep-99
Bank of Shanghai
Nov-01
Bank of Nanjing
Dec-01
Bank of Shanghai
HSBC
Dec-01
Bank of Shanghai
Mar-02
Bank of Shanghai
Sep-02
Sep-02
Dec-02
Citibank
Oct-03
Dec-03
Industrial Bank
Dec-03
Industrial Bank
Dec-03
Industrial Bank
Jun-04
Newbridge Capital
Aug-04
Bank of Communications
HSBC
Nov-04
Dec-04
ICBC (Asia)
Dec-04
Jan-05
Mar-05
Bank of Beijing
ING/Deutsche Bank
Jun-05
Bank of America
Jul-05
Temasek
Aug-05
Bank of China
RBS
Aug-05
Bank of China
Temasek
Sep-05
Bank of Nanjing
BNP Paribas
Sep-05
ICBC
Oct-05
Bank of Beijing
Oct-05
Bank of Beijing
ING Group
Oct-05
Rabobank
Dec-05
Bank of Tianjin
ANZ Bank
Jan-06
Bank of China
UBS
Jan-06
URCB Hangzhou
Rabobank
Apr-06
Huaxia Bank
Jul-06
Nov-06
Mar-07
Bank of Dalian
Apr-07
Huishang Bank
75
4. Liquidity Ratios
5. Capital Requirements
Further reduce excessive capital
requirements and eliminate the
mandatory 30% deposit of working
capital. High capital requirements
do not provide additional
guarantees, and instead result in
inefficient allocation of resources,
reducing returns on equity and
lowering levels of investment.
6. Business Scope of
Representative Offices
Clarify what forms of business
representative offices are legally
allowed to conduct.
76
Foreword
As an integral part of Chinas
national economic reform and
opening-up as well as a natural
outcome of Chinas increasing
integration into the world economy,
the opening-up of the Chinese
banking sector is instrumental in
promoting the banking industry
reform and thereby improving
the competitiveness of Chinas
banking sector as a whole.
The China Banking Regulatory
Commission (CBRC) attaches great
importance to the banking sector
opening-up, and is committed to
promoting the banking industry
reform and opening-up, both
strengthening the supervision and
improving the services quality. It
is the governments conviction
that strengthened supervision and
improved services will pave the
way for further opening-up.
Since 1980, the banking market
opening-up has rolled out from
certain regions to the entire
country. At the same time, it has
extended from foreign currency
business to local currency
activities, from foreign residents
and enterprises to local customers.
77
78
79
80
81
82
83
84
85
86
Providing an enabling
operational environment for
foreign bank branches
While implementing the local
incorporation oriented policy,
China has also given foreign bank
branches greater flexibility in their
operations. The major elements of
this policy include: foreign bank
branches may continue the current
business, and are allowed to take
in a RMB time deposit of no less
than RMB1 million yuan from
Chinese citizens; the business
approval process is further
streamlined and the working
capital requirement is lowered;
the requirement that the foreign
exchange deposits taken by a
foreign-funded bank shall not
exceed 70% of its aggregate
foreign exchange assets within
the Chinese territory is removed,
and; foreign bank branches may,
if they wish, convert into locally
incorporated subsidiaries at
any time according to their own
business development strategies.
Encouraging foreign-funded
banks to adopt diversified
operational forms to develop in
China
China continues to support
foreign banks to set up new
establishments in China, and at
the same time refine the policy to
encourage their equity investment
in Chinese banks. With the aim of
boosting the overall development
of the Chinese market, promoting
Prudential Supervision
87
88
89
Third Stage
December 2001 China joined
the WTO. The geographical and
customer restrictions on foreign
currency for foreign banks were
removed. Foreign banks were
allowed to undertake foreign
currency business to Chinese
enterprises and residents, and
to undertake RMB business in
Shanghai, Shenzhen, Tianjin, and
Dalian.
December 2001 The Regulations
of the Peoples Republic of China
on the Administration of Foreign
Financial Institutions (Amended)
was publicized.
January 2002 The Rules for
Implementing the Regulations of
the Peoples Republic of China
on the Administration of Foreign
Financial Institutions (Amended)
was publicized.
December 2002 RMB business
was opened to foreign banks in
five cities i.e. Guangzhou, Qingdao,
Zhuhai, Nanjing and Wuhan.
December 2003 RMB business
was opened to foreign banks
90
91
Rank
Bank
China
World
11
Tier 1 capital
Assets
US$m
%ch.
US$m
Rank
35,647
48
568,232
16
31,670
53
799,745
17
31,346
11
587,352
60
9,864
591,190
65
8,949
52
176,382
173
2,948
18
90,949
188
2,644
75,826
247
1,893
22
69,037
251
1,831
71,067
10
297
1,501
16
58,733
10
11
311
1,435
-7
47,655
11
12
339
1,238
44,129
12
13
356
1,170
35
29,667
14
14
370
1,090
24
28,817
15
15
495
707
36,456
13
16
548
625
51
28,403
16
17
672
440
n/a
8,565
19
18
683
432
n/a
15,789
17
19
821
307
71
5,734
20
20
839
298
429
8,912
18
21
896
264
n/a
5,088
24
22
927
249
n/a
5,452
22
23
937
243
5,221
23
24
963
233
3,772
25
25
1000
216
14
5,472
21
92
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