1 Introduction
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Notes 1 Introduction 1. In this book, the term “bank(s)” or “banking” refers to deposit-taking insti- tutions or retail banking. All translations are by the author, except where otherwise indicated. 2. Banks around the World, Top Banks in the World 2013, 2013, http://www .relbanks.com/worlds-top-banks/assets. 3. United States-China Economic and Security Review Commission, “China’s Financial System and Monetary Policies: The Impact on U.S. Exchange Rates, Capital Markets, and Interests Rates,” 2006, http://www.uscc.gov /hearings/2006hearings/transcripts/aug_22/06_10_22_trans.pdf, 3. 4. Zhong Fei Zhou, Banking Laws in China (London: Kluwer Law International, 2007). 5. Zhou Zhong Fei and Li Jing Wei, “Independence and Accountability of the People’s Bank of China: A Legal Perspective,” in James R. Barth (ed.), Financial Restructuring and Reform in Post-WTO China (London: Kluwer Law International, 2007), 77, 103. 6. Susan Krause Bell and Howard Chao, The Financial System in China: Risks and Opportunities Following the Global Financial Crisis (Washington, DC: Promontory Financial Group, 2010), 7; IMF, “People’s Republic of China: Financial System Stability Assessment,” 2011; World Bank and the People’s Republic of China Development Research Center of the State Council, “China 2030 Building a Modern, Harmonious, and Creative High-Income Society,” 2012. 7. Anthony Ogus, Regulation Legal Form and Economic Theory (Oxford: Hart Publishing, 1994), 4. 8. CBRC, Guan Yu Zhong Guo Ren Min Yin Hang Ye Jian Du Wei Yuan Hui Lu Xing Yuan You Zhong Guo Ren Min Yin Hang Lu Xing de Jian Du Guan Li Zhi Ze de Jue Ding [Decision on Chinese Banking Regulatory Committee in Charge of Supervisory and Regulatory Responsibility], 2003, http://www .cbrc.gov.cn/chinese/home/jsp/docView.jsp?docID=259. 9. Laws of People’s Republic of China on Banking Regulation and Supervision, 2003, s3. 10. CBRC, Yin Jian Hui de Jian Guan Mu Biao [The Regulatory Objectives of the CBRC], 2003, http://www.cbrc.gov.cn/english/info/yjhjj/index.jsp 158 NOTES 11. CBRC, Annual Report 2008, Beijing, 2009, 16. 12. CBRC, Annual Report 2007, Beijing, 2008, 101. 13. Ibid., 60. 14. Laws of People’s Bank of China, 1995, s3. 15. PBoC, Zhong Guo Ren Min Yin Hang Hang Zhang Zhou Xiao Chuan Hui Da Ji Zhe Ti Wen [The PBoC’s Governor Zhou Met the Media], Beijing, 2011, http://www.pbc.gov.cn/publish/goutongjiaoliu/524/2011/2011080300504242 3947288/20110803005042423947288_.html. 16. PBoC, Zhong Guo Ren Min Yin Hang Jian Jian [The Introduction of the PBoC], Beijing, 2000, http://www.pbc.gov.cn/publish/zhengwugongkai/495 /1811/18118/18118_.html. 17. Please refer to chapter 4 for further details. 18. Gregory C. Chow, China’s Economic Transformation, 2nd ed. (Oxford: Wiley- Blackwell, 2007), 252. 19. Xinhua, Li Jie Quan Guo Jin Rong Hui Yi Hui Gu [Revisiting National Conference on Financial Work], Beijing, 2007, http://news.cctv.com/special /C17533/20070118/103903.shtml. 20. Ibid. 21. Dai Xiang Rong, “Hui Gu 1997 Quan Guo Jin Rong Gong Zuo Hui Yi” [1997’s National Conference on Financial Work], Zhong Guo Jin Rong [China Finance] 55 (2010): 19–20. 22. In China, the financial sector is segregated into banking, insurance, and security. 23. Xinhua, Li Jie Quan Guo Jin Rong Hui Yi Hui Gu. 24. Xinhua, Quan Guo Jion Rong Gong Zuo Zai Jing Zhao Kai Wen Jiao Bao Zuo Zhong Yao Jiang Hua [Wen’s Speech at the National Conference on Financial Work], Beijing, 2007, http://news.xinhuanet.com/politics/2007–01/20/content _5630446.htm. 25. Gail Pearson, “Risk and the Consumer in Australian Financial Services Reform,” Sydney Law Review 28 (2006): 103. 26. Xinhua, Zhong Yang Jing Ji Gong Zuo Hui Yi Ju Xing Xi Jing Ping Zuo Zhong Yao Jiang Hua [Xi Jing Ping’s Speech at the Government’s Meeting on Economy], Beijing, 2012, http://news.xinhuanet.com/fortune/2012–12/16 /c_114044452.htm. 27. CPC, Bu Duan Ti Shen Fa Zhan Zhi Liang he Xiao Yi [Develop the Quality and “Xiao Yi” of the Economy], Beijing, 2013, http://cpc.people.com.cn /shipin/n/2013/0322/c244186–20886323.html. 28. National People’s Congress, “Constitution of People’s Republic of China,” 1982, Preamble. 29. The State Council, Gong He Guo de Zu Ji [Path of the Republic], Beijing, 2009, http://www.gov.cn/jrzg/2009–09/24/content_1425253.htm. 30. Zhong Gong Zhong Yang Wen Xian Yan Jiu Shi [The Communist Party of China Research Department], Jiang Ze Ming Lun You Zhong Guo Te Se de She Hui Zhu Yi [Jiang Ze Min: Socialist Market Economy with Chinese Characteristics], The Communist Party of China Research Department, 2002, 45. NOTES 159 31. Report on 15th the Communist Party of China National Meeting, 1997, http:// cpc.people.com.cn/GB/64162/64168/64568/index.html. 32. Ibid. 33. Chen Shi Kui, “Bu Du Li Gao Dang Jia Yu She Hui Zhu Yi Shi Chang Jing Ji de Neng Li” [Increase the Party’s Capability in Managing Socialist Market Economy], Chong Qin You Dian Yue Xuan Xue Bao [Journal of Chong Qin Post College] 2 (2006): 145. 34. World Bank and the People’s Republic of China Development Research Center of the State Council, “China 2030,” 111. 35. The table has been compiled based on PBoC, “China Monetary Policy Report 2013 First Quarter,” 2013, 7. 36. IMF, “How the IMF Promotes Global Economic Stability,” 2013, 1, http:// www.imf.org/external/np/exr/facts/globstab.htm. 37. Ibid., 1. 38. World Bank, “Governance and Development,” 1992, 1, http://documents .worldbank.org/curated/en/1992/04/440582/governance-development. 39. A.W. Phillips, “Stabilisation Policy in a Closed Economy,” Economic Journal 64, no. 254 (1954): 291. 40. World Health Organization, “China: Health, Poverty, and Economic Development,” 2005, 25, http://www.who.int/macrohealth/action/CMH _China.pdf. 41. Claude Ake, “A Definition of Political Stability,” Comparative Politics 7, no. 2 (1975): 271. 42. Wendy Dobson and Anil K Kashyap, “The Contradiction in China’s Gradualist Banking Reforms: General Discussion,” Brookings Papers on Economic Activity 2 (2006): 158 and Suzanne Berger, Albert Hirschman, and Charles Maier, In Search of Stability: Explorations in Historical Political Economy (New York: Cambridge University Press, 1987), 267. 43. Alberto Alesina, “Political Instability and Economic Growth,” Journal of Economic Growth 1, no. 2 (1996): 205. Some research show that there is no evi- dence of correlation between political instability and economic growth. See N. Campos and J. Nugent, “Who is Afraid of Political Instability?” Journal of Development Economics 67 (2002): 172. Also see Samuel Huntington, Political Order in Changing Societies (New Haven, CT; London: Yale University Press, 1968), 8. 44. The State Council, Hu Jing Tao Zai Qing Zhu Zhong Guo Gong Chang Dang Cheng Li 90 Zhou Nian Da Hui Shang de Jiang Hua [Hu’s Speech at 90th Anniversary of the Foundation of the Communist Party of China], Beijing, 2011, http://www.gov.cn/ldhd/2011–07/01/content_1897720.htm. 45. Xinhua, Zhong Guo Zheng Zhi She Hui Wen Ding Ju You Jian Shi de Ji Chu [A Solid foundation for China’s Political Stability], Beijing, 2011, http://news .xinhuanet.com/politics/2011–03/16/c_121195656.htm. 46. David Dollar, “Poverty, Inequality and Social Disparities During China’s Economic Reform,” Policy Research Working Paper 4253, World Bank, 2007, 2. 47. China Daily, Country’s Wealth Divide Past Warning Level, http://www.china- daily.com.cn/china/2010–05/12/content_9837073.htm. The Gini coefficient 160 NOTES provides a measure of the degree of income inequity in a scale from 0 to 1.0 that represents perfect equity. See Australian Bureau of Statistics, Household Economic Wellbeing, September 2010, http://www.abs.gov.au/ausstats/abs@ .nsf/2f762f95845417aeca25706c00834efa/27ced12db6ca9111ca25779e001c4 843!OpenDocument. 48. Thomas Lum, “Social Unrest in China,” Congressional Research Service, The Library of Congress, 2006, 15. 49. Stephan Haggard and Sylvia Maxfield, “Political Explanations of Financial Policy in Developing Counties,” in Stephan Haggard, Chung H. Lee, and Sylvia Maxfield (eds.), The Politics of Finance in Developing Countries (Ithaca, NY: Cornell University Press, 1993), 323. 50. “Yin Jian Hui Dang Wei” [The Communist Party of China Committee on the CBRC], 2009, http://www.gov.cn/gzdt/2009–09/30/content_1430875 .htm. 51. Ian Bremmer, The End of the Free Market (New York: Penguin Group, 2010), 5. 52. Richard Dale and Simon Wolfe, “The UK Financial Services Authority: Unified Regulation in the New Market Environment,” Journal of Banking Regulation 4, no. 3 (2003): 201. 53. George Clarke et al., “Foreign Bank Entry: Experience, Implications for Developing Economies, and Agenda for Further Research,” The World Bank Research Observer 18, no. 1 (2003): 26. This view is contentious, see Bang Nam Jeon, Maria Pia Olivero, and Ji Wu, “Do Foreign Banks Increase Competition? Evidence from Emerging Asian and Latin American Banking Markets,” Journal of Banking & Finance 35 (2011): 858. 54. Chung-Hua Shen, Chin-Hwa Lu, and Meng-Wen Wu, “Impact of Foreign Bank Entry on the Performance of Chinese Banks,” China & World Economy 17, no. 3 (2009): 120. 55. The American Chamber of Commerce People’s Republic of China, “American Business in China,” 2011, 174. 56. Katharina Pistor, “Banking Reform in the Chinese Mirror,” Columbia Law and Economics Working Paper No. 354, Columbia University School of Law, 2009, 19–20. 57. Xinhua. Yin Jian Hui: Wai Zi Yin Hang Yun Xing He Jian Guan Mian Ling Tiao Zhan [The CBRC: The Operation and Supervision of Foreign Banks Are Challenged], Beijing, 2010, http://news.xinhuanet.com/finance/2010 –04/15/c_1236071.htm. 58. CBRC, Annual Report 2006, Beijing, 2007, 6, 42. 59. CBRC, Annual Report 2007, 11.