An Argument Against Citigroup in China Chinese regulations have historically limited the operations of foreign banks, but with the entry of China into the World Trade Organization (WTO), that is all slated to change- in theory. Geographic limitations for foreign banks are to be lifted by December 2006, along with a host of other restrictions that have retarded the growth of Western banks and the Chinese banking sector as a whole. Progress on these liberalizations has been slow, however, and Chinese regulators have even put other limitations in place that will hurt competition in the long run
This is far from the only problem facing the Chinese banking sector. Decades of policy lending have saddled the four state-owned banks with an unhealthy level of nonperforming loans from state-owned enterprises. Asset management companies have been created to manage these nonperforming loans, but the situation is far from stable. A lack of corporate governance has also created an environment where management of banks is opaque and corruption widespread. The risks inherent in this industry are great.
Midway through 2005, Citibank faced significant barriers to growth in China. It had worked hard to become the dominant foreign bank in the country in expectation that the country's banking sector would be opened to all compe...
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...s well as the first international bank to launch two new investment products, Premium Accounts and Market Linked Accounts, in China (www.citigroup.com/citigroup/press/2005/050304a.htm.)
While these were all significant developments, Citibank's pace of growth was non-existent in its Chinese operations. The regulatory changes that Citibank had expected never materialized and as a result, the bank was unable to offer the bulk of the services most important to profitability in China.
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The early decades of the nineteenth century saw the establishment of banks in the Caribbean largely as a convenience for the local governments. Throughout much of the nineteenth century, most Caribbean banks operated as an oligopoly with limited government influence – this directly translated into higher profits. However, over time, the banking environment could best be described as complex and dynamic. Competition increased, resulting into greater need for improved customer service, product innovation and cost reduction strategies. In order to achieve this, the banking sector was undergoing major structural reforms characterized by mergers and acquisitions. On July 23, 2001 Barclays and CIBC announced that they were in advanced discussions which were intended to lead to the combination of their retail, corporate and offshore banking operations in the Caribbean.
Gittings, John. The Changing Face of China: From Mao to market. Oxford University Press, 2005.
Xingzhong, LI Daokui David YIN. "The International Monetary System in the Era of Post-Financial Crisis: What Policy Options Does China Have?[J]." Journal of Financial Research 2 (2010): 005
...erally felt united in the common cause of building up China (Fairbank and Goldman 369).Fully 8 years were wasted in terms of economic growth and the cost of opportunity loss was enormous. Considering that this setback occurred when other Asian countries were taking off economically(Chan3).
Goodrich, L. Carrington (1959). A Short History Of The Chinese People. New York: Harper &
The Challenge of China Contribution to a Transcultural Political Economy ofCommunication for the Twenty-First Century
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Yan, Xuetong. "The Instability of China–US Relations", The Chinese Journal of International Politics 3, no. 3 (2010): 263-292, http://cjip.oxfordjournals.org/content/3/3/263.full
Weiwei, Z., (2011) The China Wave - Rise of a Civilizational State. (World Century Publishing Corporation).
Hsueh, Chun- tu, The Chinese Revolution of 1911: New Perspectives (Hong Kong: Joint _____Publishing Co., 1986), pp.1-15, 119-131, 139-171
Wei-Wei Zhang. (2004). The Implications of the Rise of China. Foresight, Vol. 6 Iss: 4, P. 223 – 226.
If the development of Financial Market in America is like a sturdy adult, I would say the development of Financial Market in China is just like a child. The history of the U.S. financial market was established and has been growing over two centuries. For China, only twenty year has now passed since the financial market was built and growth. The Chinese financial market seems to be immature compared to the U.S. For example, China’s financial market does not have a thorough monitored stock market. The child is just starting to imitate the behavior and follow the step of the adult. However, the child is too young that mistakes always being made. On the other hand, since the child is in his early growth stage, a high level of growth is undertaking and a large progress might be attained. In today's China’s financial market, it is necessary for China to gather finance professionals in development of financial market. As a recent graduate student, working in the finance field less than a year, it is extremely hard for me in making a tiny positive effect on the growth of Chinese financial. However, to be engaged myself to the development of Chinese financial market is my long-term career goal.
The failure of adequate board accountability has indicated strong adverse effects on corporate performance including, the bankruptcy of various public companies, thereby casting serious doubt on the credibility and efficacy of board accountability. For example, Lehman Brothers scandal, the largest bankruptcy in U.S history, Northern Rock was a large failure of a financial institution in the United Kingdom (Hull 2015:16). In Ireland, the Anglo-Irish Bank created a huge bubble that plunged the state into economic recession. In September 28, 2008, the Irish Government signed into law, the “bank guarantee” which provided with immediate effect a guarantee arrangement to safeguard all deposits in retail, commercial, institutional and interbank transactions, covered bonds, senior debt and dated subordinated debt (Lenihan 2008). Banks in Ireland clearly needed yet more capital from the State (Irish Times 19 November 2011) and this underscores the need for the government’s bailout
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.