/ Journals / Journal of Finance and Economics
Journal of Finance and Economics
LiuYuanchun, Editor-in-Chief
ZhengChunrong, Vice Executive Editor-in-Chief
YaoLan BaoXiaohua HuangJun, Vice Editor-in-Chief
Editorial Board  |  Read more about this journal »
AboutAll IssuesSubmissionSubscribeContact Us
Home  >  All Issues  >  2019  >  No.12  >  Article Details
New China’s 70-Year Banking System Construction：Ideology Evolution and Theory Innovation
Xin Yaoyao
Full Article  |  PDF Article(1712.7 KB)  working paper
Journal of Finance and Economics Vol. 45, Issue 12, pp. 73 - 85,123 (2019)  DOI:10.16538/j.cnki.jfe.2019.12.006
First published at:Dec 01, 2019
Summary
References
Summary

At the beginning of New China, the banking system did not have fully compatible experience for reference and theory guidance for the new historical era and economic conditions. Therefore, China’s policy and academic communities began exploring a banking system in line with China’s resource endowment structure and social and economic development demands. A wealth of ideologies emerged in this process. Systematic reviews on the banking system explorations and ideologies that the explorations led to in the past 70 years can not only serve as enlightenment for Chinese banking system construction in the future and experience for reference for other economies in transition, but also supplement the corresponding fields in the construction of a socialist economic discourse system with Chinese characteristics, expanding the scope of research of current mainstream economic and financial theories.

Based on the economic system transformation, this paper divides the evolution of banking system ideologies in the 70 years into three stages: the initial stage of " great unity”, the transformation stage of " diversification”, and the development stage of " marketization”. The study goes through the three stages systematically and finds that: first, the evolution of Chinese banking system ideologies is driven by the attention to practical problems in the given socio-economic context, and its main line is the economic system transformation from planned to market-oriented; second, the government’s role in the construction of New China’s banking system is emphasized, which is a featured political advantage of China and a vital experience in the construction of a socialist market economy with Chinese characteristics; third, the banking system construction has always been based on China’s national conditions, and achieved theory innovations in banking function, system construction, government role and reform model in continuous explorations.

The conclusions of this paper also give enlightenment to the next step of Chinese banking system development: first, the system shall keep deepening in marketization and improve its risk resistance and competitiveness to solve new problems in the new era; second, continuous attention must be given to the government boundaries and a good government-market relationship must be ensured; finally, this paper further abstracts the useful experience in New China’s banking system construction and builds a systematic Chinese banking theory system and framework.

This paper is innovative in the following aspects: first, it systematically goes through the policies and academic ideologies of the banking system construction in New China in the past 70 years and the evolution path of the banking system construction in China; second, it summarizes the theory innovations of the banking system construction in New China in banking function, system construction, government function and reform model, and abstracts the relevant evaluations of the Chinese banking system given by the international academic community; third, it analyzes the focuses to be in the next step of exploration.

Keywords
70 years of New China; banking system construction; ideology evolution; theory innovation
[1] Ai H D, Cai Z G. Central bank independence after the separation of regulatory functions[J]. Journal of Financial Research, 2003, (7): 73-79. (In Chinese)
[2] Ba S S, Shen C Z. A discussion on the reform of financial supervision system from the perspective of financial structure[J]. Contemporary Finance & Economics, 2016, (9): 43-51. (In Chinese)
[3] Bai Q X, Zhang K. Historical evolution of China's policy-based finance[J]. Studies of International Finance, 2019, (9): 3-9. (In Chinese)
[4] Chen Y Q. On the question of the nature of the national bank[J]. China Finance, 1953, (21): 17-18. (In Chinese)
[5] Cheng L, Chen X D. The development and innovation of the theory of socialist market economy with Chinese characteristics in the 40 years of reform and opening-up[J]. Economic Perspectives, 2018, (12): 37-47. (In Chinese)
[6] Dong F R. China’s banking system reform: Based on joint-stock reform in banks[J]. Economic Research Journal, 1994, (1): 12-16. (In Chinese)
[7] Fan G, Zhang S G, Wang L M. Dual-track transition and “dual regulation” (Ⅱ): Current macroeconomic problems and countermeasures[J]. Economic Research Journal, 1993, (11): 3-9. (In Chinese)
[8] Gao X. The role of national banks in socialist construction[J]. Economic Research Journal, 1962, (10): 12-23. (In Chinese)
[9] Mehran H, Quintyn M. Financial sector reforms in China[J]. Translated by Li Y. International Society and Economy, 1996, (9): 28-31. (In Chinese)
[10] Hu J C, Tan M. Compendium of the history of new China’s economic thoughts[M]. Shanghai: Shanghai University of Finance and Economics Press, 1997. (In Chinese)
[11] Hu L Q, Peng H F, Peng Y. A study on the coordination of the macro-prudential and micro-prudential supervision over China’s commercial banks[J]. Management World, 2012, (11): 174-175. (In Chinese)
[12] Hu L S, Li W S. A preliminary study on the Issue of joint-stock system of specialized bank in China[J]. Journal of Financial Research, 1986, (11): 19-23. (In Chinese)
[13] Jia C Y, The central bank must have the right and the law[J]. Journal of Financial Research, 1985, (6): 20-22. (In Chinese)
[14] Jia K, et al. The major challenge of financial innovation during the strategic opportunity period: Where is China’s policy-based finance going?[M]. Beijing: China Economic Publishing House, 2010. (In Chinese)
[15] Li C R, Zuo C T. Socialist banking systems[M]. 2nd ed. Beijing: China Financial & Economic Publishing House, 1978. (In Chinese)
[16] Li Z H. The development and changes of China's banking[M]. Shanghai: Truth & Wisdom Press, Shanghai People’s Publishing House, 2008. (In Chinese)
[17] Lin Y F. China’s dual-track progressive reform model has worldwide significance[N]. Beijing Daily, 2018-08-13(014). (In Chinese)
[18] Liu H R. Research on financial system reform in China[M]. Beijing: China Financial Publishing House, 1987. (In Chinese)
[19] Liu M K. China’s banking reform and opening-up in 30 years:1978-2008[M]. Beijing: China Financial Publishing House, 2009. (In Chinese)
[20] Mo N Q. Money and banking[M]. Shanghai: Petrel Bookstore, 1949a. (In Chinese)
[21] Mo N Q. New China’s banking system[J]. Across Time and Space, 1949b, (5):4-5. (In Chinese)
[22] Qian C J. Research on the thoughts of banking regulatory system in the process of China’s reform and opening-up: 1979-2004[M]. Shanghai: Shanghai University of Finance and Economics Press, 2007. (In Chinese)
[23] Qu D C. A study on the relative independence of the central bank[J]. Economic Perspectives, 1995, (2): 34-37. (In Chinese)
[24] Shen S, Zhou J S. Is bank contracting feasible?[J]. Journal of Financial Research, 1988, (8): 13-17. (In Chinese)
[25] Shou J W. Speech on currency and credit[M]. Shanghai: New Knowledge Publishing House, 1955. (In Chinese)
[26] Song R J, Cao F Q. How to establish the central bank system of China?[J]. Research on Economics and Management, 1981, (5): 1-4. (In Chinese)
[27] Song S Y. A historical investigation of the market-oriented reforms of China’s banking industry: 1979-2006[M]. Beijing: People’s Publishing House, 2008. (In Chinese)
[28] Brean D. Bank reform in China[J]. Translated by Wu J N, Ao W. Foreign Theoretical Trends, 2008, (9): 44-50. (In Chinese)
[29] Tao S G. Internal logic and path choice to institutional change of China’s banking[M]. Beijing: People’s Publishing House, 2014. (In Chinese)
[30] Wang G G. The 70 years of China banking industry: Brief history, main features and historical experience[J]. Management World, 2019, (7): 15-25. (In Chinese)
[31] Wang Y. Reform of the regulatory mechanism of China’s monetary policy[J]. Economic Research Journal, 2001, (11): 28-34. (In Chinese)
[32] Wang Y J, Tian G Q. Resolving non-perform asserts, joint-stock reconstruction and the strategy of introducing foreign capital[J]. Economic Research Journal, 2004, (11): 28-36. (In Chinese)
[33] Wang S L. Entry policy of private banks: Better to slow down[J]. South China Finance, 2002, (8): 12-15. (In Chinese)
[34] Xiao F. Is the bank credit operation a service or a supervision?[J]. Journal of Finance and Economics, 1958, (5): 15-17. (In Chinese)
[35] Xin Y Y. Institutional changes and logic to poverty alleviation of rural finance in China[J]. Gansu Social Sciences, 2019, (3): 151-156. (In Chinese)
[36] Yi G, Zhao X X. Banking competition in China: Institutional expansion, tool innovation and property rights reform[J]. Economic Research Journal, 2001, (8): 25-32. (In Chinese)
[37] Yu L C, Ju Y. Monopoly and competition: reform and development of China's banking industry[J]. Economic Research Journal, 1999, (8): 48-57. (In Chinese)
[38] Yu T Y. Profit goal of specialized bank in China[J]. Journal of Financial Research, 1985, (7): 36-38. (In Chinese)
[39] Yu T Y, Wu B Y, Chen Y F, et al. Establishing the dual-track banking system is needed in a planned commodity economy[J]. Journal of Financial Research, 1986, (10): 31-36. (In Chinese)
[40] Stiglitz J. Comparison of economic system transition between China and foreign countries[J]. Economic Perspectives, 2001, (5): 43-46. (In Chinese)
[41] Yu X J. The independence of the central bank and the indirectness of macro-control measures[J]. Journal of Financial Research, 1994, (10): 23-29. (In Chinese)
[42] Zhan S. A risk analysis of Chinese banking industry introducing strategic investors[J]. Journal of Finance and Economics, 2005, (1): 104-114. (In Chinese)
[43] Zhang G L, Xia D R. Introducing foreign banks and perfecting China's banking system[J]. Finance & Trade Economics, 1985, (10): 29-32. (In Chinese)
[44] Zhao S M, He Y J. Analysis to the relations between macrofinancial risk and bank’s risk behaviors: Coordination between macro-prudential and micro-prudential regulation policies[J]. Journal of Central University of Finance & Economics, 2019, (6): 33-44. (In Chinese)
[45] Zhao X M. Discussion on the enterprisization of specialized bank[J]. Economic Research Journal, 1987, (1): 53-56. (In Chinese)
[46] Zhong W. On the premise of effective separation of banking supervision and monetary policy[J]. Management World, 2003, (3): 45-52. (In Chinese)
[47] Zhou C Q. Reflection on the enterprisization of specialized bank[J]. Finance & Trade Economics, 1988, (8): 51-54. (In Chinese)
[48] Zhou J S. Opinions on the commercialization of specialized bank[J]. Journal of Financial Research, 1994, (2): 15-16. (In Chinese)
[49] Zhou Y G. New China’s financial problems[M]. HK: Economic Information & Agency, 1949. (In Chinese)
[50] Zhou Y M. Talking about the service and supervision of bank credit operation: Discuss with Xiao Fu[J]. Journal of Finance and Economics, 1958, (6): 52-53. (In Chinese)
[51] Zhu C F. The thoughts of contemporary China’s banking system reform[M]. Beijing: People’s Publishing House, 2001. (In Chinese)
[52] Allen F, Qian J, Qian M J. Law, finance, and economic growth in China[J]. Journal of Financial Economics, 2005, 77(1): 57-116. DOI:10.1016/j.jfineco.2004.06.010
[53] Barth J R, Li L, Li T, et al. Reforms of China’s banking system[A]. Caprio G. The Evidence and Impact of Financial Globalization[C]. London: Elsevier, 2013.
[54] Berger A N, Hasan I, Zhou M M. Bank ownership and efficiency in China: What will happen in the world’s largest nation?[J]. Journal of Banking & Finance, 2009, 33(1): 113-130.
[55] Chan K C, Fung H G, Thapa S. China financial research: A review and synthesis[J]. International Review of Economics & Finance, 2007, 16(3): 416-428.
[56] García-Herrero A, Santabárbara D. An assessment of China’s banking system reform[A]. Kaji S, Ogawa E. Who Will Provide the Next Financial Model?[C]. Tokyo: Springer, 2013: 147-175.
[57] Hsiao C, Shen Y, Bian W L. Evaluating the effectiveness of China’s financial reform: The efficiency of China’s domestic banks[J]. China Economic Review, 2015, 35: 70-82. DOI:10.1016/j.chieco.2015.05.006
[58] Huang Y P, Wang X. Does financial repression inhibit or facilitate economic growth? A case study of Chinese reform experience[J]. Oxford Bulletin of Economics and Statistics, 2011, 73(6): 833-855. DOI:10.1111/j.1468-0084.2011.00677.x
[59] Laurenceson J, Chai J C H. Financial reforms and economic development in China[M]. Northampton: Edward Elgar Publishing, 2003.
[60] Luo D. The development of the Chinese financial system and reform of Chinese commercial banks[M]. London: Palgrave Macmillan, 2016.
[61] Nolan P. The west and China: Globalisation and competition in financial services[J]. Journal of Chinese Economic and Business Studies, 2015, (2): 87-104.
[62] Stent J. China’s banking transformation: The untold story[M]. New York: Oxford University Press, 2016.
[63] Yeung G, He C F, Liu H. Centralization and marginalization: The Chinese banking industry in reform[J]. Applied Geography, 2012, 32(2): 854-867. DOI:10.1016/j.apgeog.2011.09.003
Cite this article
Xin Yaoyao. New China’s 70-Year Banking System Construction：Ideology Evolution and Theory Innovation[J]. Journal of Finance and Economics, 2019, 45(12): 73-85. 
Export Citations as: For   
Previous: Chinese-style Tax and Fee Reduction and Economic High-quality Development：A Study from the Perspective of Enterprise Financialization
Next: Research on the Resource Allocation Efficiency of Administrative Examination and Approval Center: An Anlysis Based on the Data of Chinese Industrial Enterprises
ISSUE COVER
2019, Issue 12
RELATED ARTICLES
Exploration on the Construction of Chinese Economics System in Early Modern Times：Based on the Perspective of Research Content
Zhang Shen, Xin Yaoyao
Journals  |   Articles  |   Submission  |   Subscribe  |   Contact us
Copyright 2024 © Department of Academic Journals, SUFE    No. 321 Guoding Rd, Shanghai, China    P.O: 200433