ABSTRACT
Chapter 7 identifies the major institutional features of the evolution of China’s banking system. It demonstrates the importance of China’s bureaucratic tradition, and the focus of officials on stability and pragmatic reform, to the transformation and improvement of the banking system. It examines how China’s officials, wary of Western economic self-interest, adapted Western ideas selectively to facilitate the development of a stable, well-regulated banking system that promoted economic development by serving the real economy. It identifies future reform priorities and China’s potential role in the future governance of the global financial system.
