China’s Community Banks中国地方性 ( 社区 ) 银行的发

展情况By Dr. Tao Zhang

People’s Bank of China

May 2005, Shanghai, China

2005年 5月 25日 , 上海

Outline

• Background: China’s banking system

• China’s community banks

• Issues for discussion

The Banking System: A large range of banks

• 4 SOBs• 3 Policy banks• 12 JEBs• 112 City Commercial Banks• 709 City credit unions• 4 Rural commercial banks• 4 Rural cooperative banks• 33,586 rural credit unions• 119 foreign-owned banking institutions (branches,

res.rep. offices)

Size of the banking sector

• Banking sector: dominant in the financial industry

• By March 2005 ， total banking assets Y32. trillion RMB (vs. GDP: Y10.4 trillion RMB )

• That’s 95% of the total asset of the entire financial institutions

Bank lending dominates (by end 2004 ）

l oans 82. 9%：

t reasurybonds: 10. 8%

corporatebonds: 1. 1%

stocks: 5. 2%

64. 21%

12%0. 61%

6. 10%

17. 28%

国有商业银行股份制商业银行城市商业银行城市信用社农信社及农商行

SSOB

Market shares: distribution of banks全国商业银行市场份额比较表

What is a community bank

• Definition 1: providing banking services to local residents and firms, and in doing so, specializing in providing banking services to local communities;

• Definition 2: chartered or licensed to provide commercial banking or saving services in a specified locality

Some characters of community banks

社区银行的基本特征• Limited size of assets (USA ： less th

an US$1 billion ）• At least half of deposits come from lo

cal community 至少一半的存款来自于同一个县内的各个分支机构

• Client base: local community, SMEs

Community Banks in China中国的中小金融机构

• China’s community banks: in distinguish from national and regional banks

• There are city and rural community banks

• There is not yet a single community bank that’s is privately owned

Types of Community Banks in China

中国小金融机构的类型• City commercial banks 城市商业银行• City credit unions 城市信用社• Rural credit unions 农村信用社• Rural cooperative banks 农村合作银行

• Rural commercial banks 农村商业银行• Some Joint-Equity Banks (JVBs)

Why Community Banks

• Help ease the situation: SME and rural financing社区银行可以有效地改善中小企业和农村贷款难的状况。

• Not to compete with “big brothers” 社区银行服务于小企业和社区居民，和大银行不会形成激烈冲突。

• Local knowledge advantage 社区银行通常十分熟悉本地市场，信息不对称程度相对大银行而言较小。

• Winning more support from local government and local residents 社区银行则主要将一个地区吸收的存款继续投入到该地区，从而推动当地经济的发展，因此将比大银行更能获得当地政府和居民的支持。

But there are debates…

• Size does not matter most• Corporate governance that is market-

based• Greater number of small banks help

improve the composition of market players

• But more important is to fix the “bad” institutions

City Credit Union: Facts and Figures

城市信用社

City Credit Union:Facts城市信用社的改革和发展历程

• First CCU started in 1979 • Became more popular in 1986• Consolidation in 1989• Recovered after 1992• Some restructured to city cooperative Ban

ks in 1995 ， renamed to City Commercial Banks after 1998

• Close-down of some of the CCUs in 1999• Another round of consolidation in 2000

City Credit Unions: Figures(end June 2004)

• 709 institutions nation-wide 全国共有城市信用社法人机构 709 家。

• 412 in business 处于运营状态的城市信用社412 家。

• Total asset: 151.769 billion Yuan 账面资产总额 1517.69 亿元。

• Pre-tax profit:173 million Yuan in H12004

City Commercial Bank城市商业银行

• 1995, some city credit unions was restructured into city cooperative banks, to provide commercial banking services to SMEs

• Completion of city cooperative banks to city commercial banks in 1998

• 112 city commercial banks• Total asset: 1667.15 billion yuan (by end March

2005)• That’s 5.1% of total asset of financial institution

s in China• NPL ratio: 11.5%

City Commercial Banks:Figures

(end 2004)

100 million yuanNo. of institutions 112

Employees 109211

Total asset 16938.07

loans 9045.31

NPL 1060.97

NPL ratio 11.73%

City Commercial Banks: Main Issues主要问题

• Lack of managerial skills 资本管理水平较低，• Capital inadequacy 资本充足率不足的问题日益突

出， • Low quality of asset 总体资产状况较差，• Difficult NPL dissolution 不良资产处置难度加大，

资产损失率较高• Regional imbalance 发展极不平衡，呈现明显的

地区性差异；少数高风险行经营困难，风险状况十分严重。 。

Rural Credit Unions: Facts and figures 农村信用社

• 农村信用社的经营状况• 农村信用社改革 : a focus

Rurul credit union: figures (end 2004)

• Total deposits: 2784.097 b yuan• Total lending: 1955.125 b yuan• NPL ratio: 23.1%, fell by 6.27% within the year• Lending to agricultural sector: 849.029 b yuan, up

by 22.5%• Lending to farmers: 679.956 b Yuan, up by 21.86

%• 26,245 RCUs made profit in 2004, accounting for

81% of the nation-wide RCUs• RCUs as a whole in operational surplus of 10.462

b Yuan, first time ever

Rural credit unions: facts

• Associated with and managed China Agriculture Bank 1978-1996by 1978 年，农村信用社交由中国农业银行管理。

• Independent from CABC in 1996, supervised by PBOC

• Piloting reforms of RCUs in July 2007: Jiangsu province, etc: 6 provincial-level RCUs and 65 perfecture-level RCUs

• 2003-2004: RCUs reform expanded to all provinces

RCUs: Reform Measures

• Purpose: commercialization

• Principle: ownership; incentive; Central-local responsibility

• Two key issues– Ownership : local governments– Corporate governance

More RCU Reforms

Rural Cooperative Bank/Rural Commercial

bank• Figures 经营状况• Main issues 存在问题

RCBs/RComB: Figures

• By end 03/05, 19 RCBs and 8 RComBs in operation

• 23 RCBs and 1 RComBs issued with licence but yet in operation

• NPL ratio: 6.1%• RCBs and RComB all meet minimum CAR

requirements (8% and 4% respectively)  

RCBs/RComBs: Main issues存在问题

• Weak Governance 股权设置不尽合理，法人治理尚待完善。

• Lack of Internal control 内部控制制度不够健全。

• Weak human resource management劳动人事制度滞后，高素质人才缺乏。

JVBs

Growth of credit lending,2001-2004 年股份制商业银行贷款增速变动图

33.8739.05 39.11

20.5

05

1015202530354045

2001 2002 2003 2004

贷款增长 %

Privately-owned banks民营银行

• What is a private-owned bank in China? 民营银行的界定

• Why private-owned bank and why not?? 民营银行的优点

• Private-owned bank: community bank tomorrow? 民营银行是中国发展战略的必然选择

What is a privately owned bank

民营银行的界定• Def 1: controlled by private capital (equity)第一种定义强调产权结构，认为由民间资本控股的就是民营银行。

• Def 2: serve for private business firms 第二种定义强调银行的资产结构。认为民营银行主要应当为民营企业服务，向民营企业贷款。

• Def 3: market-based corporate governance第三种定义强调公司治理结构，是否采用市场化机制来经营。

Why private-owned bank and why not

• Why: – Separation of politics and business 政企分离，受到政府的干预比较少。

– Development of market oriented managers 按照市场规则选择经理人员，比较容易在竞争中培养出金融人才。

– No historical burden 没有历史包袱，经营机制灵活。

• Why not: – moral hazard

Private-owned bank: A forward looking

• SMEs: backbones in the Chinese economy

• SMEs need more small scale financing services, most of them to be provided small banks

• Private-owned banks more competitive than others

• International experiences

Issues for Discussion

Overall Concerns 中国银行体系的问题

• Corporate governance

• NPL

• Structural issues

• Biased to large firms: the “2:8” rule

• Lack of SME financing

• Regional imbalance

• Lack of business diversification

银行业业务结构

• 国外有很多特色金融机构提供特色化金融服务。而在中国，无论大银行还是中小金融机构，其业务经营范围非常单一和雷同，主要是吸收存款而后向企业贷款，即使象以前的一些非银行金融机构也是如此。而且各家金融机构过分遵循所谓的“二八原则”，片面追逐大企业。因此，我国没有出现个性化的金融服务和特色金融机构，而恶性竞争问题屡禁不止。

• 业务结构的单一使得我国一些既有的小金融机构也不能很好地为中小企业和农村提供融资服务。

社区银行国际经验小结

• 社区银行应采取“社区化”而非“全国化”的发展战略，为社区居民和小企业服务。

• 与经济功能相比较，社区银行应更注重社会功能。

• 社区银行的发展需要政府的政策支持、监管当局的有序监管以及社区金融的正确定位。

信贷业务的企业结构

• 目前，我国中小企业创造的最终产品和服务的价值占 GDP 的 55.6% ，提供了 75% 以上的就业机会，在我国经济生活中发挥着重要作用。

• 据统计，国有商业银行信贷结构中，中小企业所占的比例仅为 20% ，拒贷率高达 56.1% 。

• 中小企业的融资困境与其经济绩效极不相称，融资问题在一定程度上阻碍了中小企业的进一步发展。

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