ABSTRACT
Favorable and unfavorable factors affecting the reform of China’s State-owned banks As with all areas of reform in China, reform to do with State-owned commercial banks involves certain prerequisite conditions. It can be said that the Asian financial crisis turned some of the unfavorable conditions affecting China’s bank reform into more favorable conditions. The eruption of this crisis raised awareness among all parties about the importance of maintaining stability in our banking operations. It also raised awareness of the massive financial risk we face in having a weak and vulnerable banking system. It solidified the resolve of policy makers to reform our State-owned commercial banks.
