Chinese Interbank Markets, Investors & Regulations Examined by China's Economy & Policy-Gateway14 Feb 2012 • by Natalie Aster
As an important part of the financial market system in China, the interbank market plays the role of both a currency market and a capital market. Although the investor structure has been optimized in recent years, there are still many problems which need to be solved in terms of diversification, internationalization, and professionalization. Developing regulations for investors requires taking lessons from foreign experiences and accounting for current conditions, from which the basic principles for laws, institutions, patterns, etc. can be established. In this paper, the relevant situation of the interbank market in China is analyzed.
According to the report “China’s Interbank Markets: Analysis of Investors and Regulations ” by China's Economy & Policy-Gateway International Group, in China, the definition of the interbank market is very complex, and its concept is ambiguous. According to the definition from the National Association of the Financial Market Institutional Investors, the interbank market mainly includes the interbank bond market, the interbank lending market, the foreign exchange market, the bill market and the gold market. According to the different business properties, it can be classified as the interbank lending market, bond market, foreign exchange market, derivatives market, gold market, etc. There are many problems in the current domestic interbank market regarding its existing structure and investor regulatory mechanisms which need to be improved.
China’s Interbank Markets: Analysis of Investors and Regulations
Published: January, 2012
Price: US$ 200,00
This market is at the core of the money market; its key players include state-owned commercial banks, joint-stock commercial banks, non-commercial banks, city commercial banks, rural credit cooperatives, and so on. There are several problems in China's interbank market related to the investor structure. First, the state-owned commercial banks and large banks have abundant funds, but small banks and other institutions are often in need of capital. The supply and demand characteristics are different from those in the foreign interbank lending markets, indicating that there are deficiencies in our existing reserve system, that the utilization rate of funds by the large-scale commercial banks is not high, and that the medium and small-sized financial institutions have the disadvantage of being less competitive in the market.
More information can be found in the report “China’s Interbank Markets: Analysis of Investors and Regulations” by China's Economy & Policy-Gateway International Group.
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