China : Financial Sector Assessment

This report summarizes the findings of the Financial Sector Assessment Program (FSAP) exercise for China undertaken in 2010 by a joint International Monetary Fund (IMF) and World Bank team. The first mission (June) assessed the observance of selected international standards and codes, and initiated discussions on a broad range of financial sector issues. The second mission (December) completed its review and presented a draft Aide-Memoire along with draft technical and background notes covering a range of topics relevant to China's financial sector. This report points out near-term risks, reform challenges and development opportunities China confronts as it continues to modernize its financial sector. China faces potential vulnerabilities, near-term risks and policy-induced distortions common to an evolving financial system. The challenges and opportunities are not unique, and can be addressed. The author proposes that the authorities could consider carefully sequencing the following reforms and development options: (i) further deepening the commercial orientation of the financial system; (ii) moving to more market-based means of controlling monetary and financial conditions; (iii) further strengthening regulation and supervision; (iv) upgrading the framework for financial stability and crisis management; (v) revising the strategy for financial inclusion to achieve improved access to financial services ; (vi) continuing steps to support a broad based capital market; and (vii) continue to strengthen and deepen the insurance and pension sectors; and (viii)continue enhancement of the financial market infrastructure.

Bibliographic Details

Main Authors:	World Bank, International Monetary Fund
Language:	English en_US
Published:	World Bank, Washington, DC 2011-11
Subjects:	ACCESS TO CAPITAL, ACCOUNTING, ACCOUNTING STANDARDS, ALLOCATION OF CAPITAL, ALTERNATIVE FUNDING, ALTERNATIVE INVESTMENT, ARBITRAGE, ASSET MANAGEMENT, ASSET QUALITY, BALANCE SHEET, BALANCE SHEETS, BANK BOND, BANK BOND MARKET, BANK BONDS, BANK DEPOSITS, BANK LOAN, BANK REGULATION, BANKING SECTOR, BANKING SECTOR REFORMS, BANKING SYSTEM, BOND, BOND MARKET, BOND MARKET DEVELOPMENT, CAPITAL GROWTH, CAPITAL INFLOWS, CAPITAL MARKET, CAPITAL MARKET DEVELOPMENT, CAPITAL MARKETS, CAPITAL RAISING, CAPITAL REQUIREMENTS, CAPTIVE INVESTOR, CLEARING CORPORATION, COLLATERAL, COLLECTIVE INVESTMENT, COMMERCIAL BANK, COMMERCIAL BANK ASSETS, COMMERCIAL BANK CREDIT, COMMERCIAL BANK LOANS, COMMERCIAL BANKING, COMMERCIAL BANKS, COMMODITY PRICES, COMMON MATURITIES, CONSUMER PROTECTION, CONTINGENT LIABILITIES, CONTINGENT LIABILITY, CORPORATE DEBT, CORPORATE GOVERNANCE, CREDIT COOPERATIVES, CREDIT DELIVERY, CREDIT DELIVERY SYSTEM, CREDIT EXPANSION, CREDIT FLOWS, CREDIT GROWTH, CREDIT MARKETS, CREDIT PROGRAMS, CREDIT RATING, CREDIT RATING AGENCIES, CREDIT RATINGS, CREDIT RISK, CREDIT STANDINGS, CREDITORS, DEBT ISSUANCE, DEBT ISSUANCE STRATEGY, DEBT ISSUER, DEPOSIT, DEPOSIT INSURANCE, DEPOSITORS, DERIVATIVES MARKETS, DOMESTIC CAPITAL, DOMESTIC CAPITAL MARKETS, DURABLE, ELIGIBLE INVESTMENT, EMERGING MARKET, EMERGING MARKET ECONOMIES, EQUITY MARKETS, EXPENDITURE, EXPENDITURES, FINANCIAL DEVELOPMENT, FINANCIAL HEALTH, FINANCIAL INFORMATION, FINANCIAL INFRASTRUCTURE, FINANCIAL INSTITUTIONS, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL RISKS, FINANCIAL STABILITY, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FISCAL POLICY, FIXED INCOME, FIXED INCOME MARKET, FIXED INCOME MARKETS, FOREIGN BANKS, FOREIGN EXCHANGE, FUTURE CASH FLOWS, FUTURES, FUTURES EXCHANGE, GOVERNMENT BOND, GOVERNMENT BOND MARKET, GOVERNMENT BOND MARKETS, GOVERNMENT DEBT, GOVERNMENT FINANCING, HEDGE FUNDS, HOLDING, HUMAN RESOURCES, HYPOTHECATION, IMPLICIT GUARANTEES, INCOME LEVELS, INFLATION, INFORMAL CREDIT, INFORMAL LENDERS, INFORMATION DISCLOSURE, INFORMATION TECHNOLOGY, INITIAL PUBLIC OFFERINGS, INSOLVENCY REGIME, INSTITUTIONAL INVESTOR, INSTITUTIONAL INVESTORS, INSTRUMENT, INSURANCE, INSURANCE COMPANIES, INTEREST RATE, INTEREST RATE DERIVATIVES, INTEREST RATE POLICIES, INTEREST RATE REGIME, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL STANDARDS, INVESTMENT ACTIVITIES, INVESTMENT VEHICLE, INVESTMENT VEHICLES, INVESTOR BASE, INVESTOR PARTICIPATION, INVESTOR PROTECTION, LEGAL FRAMEWORK, LEGAL SYSTEMS, LIABILITY, LIABILITY MANAGEMENT, LIFE INSURANCE, LIQUIDITY, LIQUIDITY MANAGEMENT, LOAN, LOAN RATES, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, LONG-TERM LOANS, MACROECONOMIC POLICIES, MARKET COMPETITION, MARKET CONFIDENCE, MARKET DEVELOPMENTS, MARKET DISCIPLINE, MARKET INFRASTRUCTURE, MARKET INTEREST RATES, MARKET MAKING, MARKET PARTICIPANTS, MARKET PRACTICES, MATURITIES, MATURITY, MATURITY MISMATCHES, MICRO CREDIT, MICRO-FINANCE, MONETARY POLICY, MONEY MARKET, MONEY MARKETS, MORAL HAZARD, MUTUAL FUNDS, NONPERFORMING LOANS, NPL, PAYMENT SYSTEM, PENSION, PENSION FUNDS, PORTFOLIO, POSTAL SAVINGS, PRICE FORMATION, PRICE RISK, PRICE RISKS, PRIVATE EQUITY, PRUDENTIAL STANDARDS, PUBLIC DEBT, PUBLIC SECTOR DEBT, RATES OF RETURN, REGULATORY FRAMEWORK, REGULATORY OVERSIGHT, REGULATORY STRUCTURE, REPO, REPO MARKET, REPO MARKETS, REPOS, RESERVES, RETURNS, RISK MANAGEMENT, RISK MANAGEMENT SYSTEMS, RISK POOLING, RURAL CREDIT, SAVINGS BANK, SAVINGS DEPOSITS, SECONDARY MARKET, SECONDARY MARKET LIQUIDITY, SECURITIES, SECURITIES MARKET, SECURITIES MARKETS, SETTLEMENT, SETTLEMENT SYSTEM, SHAREHOLDER, SHAREHOLDERS, SOLVENCY, STATE GUARANTEES, STOCK EXCHANGE, STRATEGIC INVESTOR, STRUCTURAL PROBLEMS, SUB-NATIONAL DEBT, SUB-NATIONAL DEBT MARKETS, SUBORDINATED DEBT, TAX, TERRORISM, TRADING, UNDERWRITERS, YIELD CURVE,
Online Access:	http://documents.worldbank.org/curated/en/2011/11/17872338/china-financial-sector-assessment https://hdl.handle.net/10986/15913
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