Description
Financial reform has been a major concern for China’s transitional economy – especially in the realms of banking and insurance – since accession to the WTO in 2001. This work scrutinizes the development and limitations of these industries during the process of institutional transformation, and demonstrates that they are now facing severe challenges as well as opportunities. The relationships between the market structure, behaviour and performance of China’s banking and insurance industries are analysed. The strengths, weaknesses, opportunities and threats (SWOT) approach is utilized in investigating the impact of WTO accession on Chinese banking and insurance, and strategies for the prevention of future financial crises are prescribed. Exploring the juxtaposition of institutional in China and the financial risk inherent in the old system, the book concludes that with WTO accession and the opening up of financial services to foreign companies, competitiveness will become more fierce, resulting in increased uncertainty, intensifying the level of risk even further.
