unit 4: banking in china

Unit 4:Unit 4:

Banking in ChinaBanking in China

Financial EnglishFinancial English

http://image.baidu.com/i?ct=503316480&z=0&tn=baiduimagedetail&word=%D6%D0%B9%FA%D2%F8%D0%D0%B1%EA%D6%BE&in=10488&cl=2&cm=1&sc=0&lm=-1&pn=4&rn=1&di=420101045&ln=315&fr=




Unit 4:Unit 4:

• Revision of Unit 3

• Overview of Unit 4

• Background information of Unit 4

• Text

• Exercises

• Assignments

Review of Unit 3Review of Unit 3

• Exercises Check-upExercises Check-up

Question & Answer

Sentence Translation

Revision of Unit 3Revision of Unit 3

Question &AnswerQuestion &Answer

1. What are the main banks’ activities?1. What are the main banks’ activities?

2. What is a merchant bank?2. What is a merchant bank?

3. What channels do banks offer to access their banking and 3. What channels do banks offer to access their banking and

other services?other services?

4. What are the economic functions of banks?4. What are the economic functions of banks?

5. What are the risks banks are susceptible to?5. What are the risks banks are susceptible to?

Check-upCheck-up

Check-upCheck-up

Answer the following questions according to the text in Unit 3Answer the following questions according to the text in Unit 3

Key to the questions:Key to the questions:

1.1. Retail banking, business banking, private banking and Retail banking, business banking, private banking and

investment banking.investment banking.

2.2. Merchant bank refers to a bank which provides capital Merchant bank refers to a bank which provides capital

to firms in the form of shares rather than loans.to firms in the form of shares rather than loans.

3.3. Branch, ATM, mail, telephone banking and online Branch, ATM, mail, telephone banking and online

banking.banking.

Question and AnswerQuestion and Answer

4. 4. Issue of money, netting and settlement of payments, Issue of money, netting and settlement of payments,

credit intermediation, credit quality improvement and credit intermediation, credit quality improvement and

maturity transformation.maturity transformation.

5.5. Liquidity risk, credit risk and interest rate riskLiquidity risk, credit risk and interest rate risk

Question and AnswerQuestion and Answer

Translate the following sentences orally

Sentence TranslationSentence Translation

As the central bank of the country, the bank must:As the central bank of the country, the bank must:

1. Stand ready to take prompt and decisive action to prevent any 1. Stand ready to take prompt and decisive action to prevent any

spreading loss of confidence.spreading loss of confidence.

2. Implement the monetary policy of the government.2. Implement the monetary policy of the government.

As the central bank of the country, the bank must:As the central bank of the country, the bank must:

1. Stand ready to take prompt and decisive action to prevent any 1. Stand ready to take prompt and decisive action to prevent any

spreading loss of confidence.spreading loss of confidence.

2. Implement the monetary policy of the government.2. Implement the monetary policy of the government.

Check-upCheck-up


3. Act as banker to the government 3. Act as banker to the government

a. Manage the exchange equalization account;a. Manage the exchange equalization account;

b. Is the note issuing authority;b. Is the note issuing authority;

c. Acts as registrar of government and nationalized industry.c. Acts as registrar of government and nationalized industry.

3. Act as banker to the government 3. Act as banker to the government

a. Manage the exchange equalization account;a. Manage the exchange equalization account;

b. Is the note issuing authority;b. Is the note issuing authority;

c. Acts as registrar of government and nationalized industry.c. Acts as registrar of government and nationalized industry.

Check-upCheck-up


4. Act as banker to the deposit banks4. Act as banker to the deposit banks

5. 5. Have about hundred (100) accounts for overseas, central Have about hundred (100) accounts for overseas, central

banks and for such bodies as the International Monetary banks and for such bodies as the International Monetary

Fund and The International Bank for Reconstruction and Fund and The International Bank for Reconstruction and

Development (the World Bank).Development (the World Bank).

6. Replace worn-out and distorted bank-notes.6. Replace worn-out and distorted bank-notes.

4. Act as banker to the deposit banks4. Act as banker to the deposit banks

5. 5. Have about hundred (100) accounts for overseas, central Have about hundred (100) accounts for overseas, central

banks and for such bodies as the International Monetary banks and for such bodies as the International Monetary

Fund and The International Bank for Reconstruction and Fund and The International Bank for Reconstruction and

Development (the World Bank).Development (the World Bank).

6. Replace worn-out and distorted bank-notes.6. Replace worn-out and distorted bank-notes.

Check-upCheck-up

Sentence Translation—Suggested AnswersSentence Translation—Suggested Answers

作为一个国家的重要银行，该银行必须：

1. 时刻准备并采取及时有效的措施防止信心流失的扩大

2. 执行国家的货币政策

作为一个国家的重要银行，该银行必须：

1. 时刻准备并采取及时有效的措施防止信心流失的扩大

2. 执行国家的货币政策


3. 执行作为国家的银行的职能

a. 保证汇率

b. 是国家的货币发行机

c. 执行政府和国家工业的登记职能

3. 执行作为国家的银行的职能

a. 保证汇率

b. 是国家的货币发行机

c. 执行政府和国家工业的登记职能


4. 执行作为储蓄银行的银行的职能。

5. 有其他央行，以及诸如国际货币仅仅组织，世界银行 IBRD 等经济组织的大约 100 个帐户。

6. 回收过期和受损的钞票并发行新币。

4. 执行作为储蓄银行的银行的职能。

5. 有其他央行，以及诸如国际货币仅仅组织，世界银行 IBRD 等经济组织的大约 100 个帐户。

6. 回收过期和受损的钞票并发行新币。

Overview of Unit 4Overview of Unit 4

本章旨在本章旨在通过对当今中国银行体系以及中国银行的分类和职能、相关银行业务的讲述对中国的银行业进行了简要的介绍和总结。通过学习本文，应对中国的银行职能和中国银行业的现状有所了解，并了解银行业的发展前景。

本章重点难点本章重点难点中国银行体系

中国各类银行的职能

中国银行业的发展现状

本章旨在本章旨在通过对当今中国银行体系以及中国银行的分类和职能、相关银行业务的讲述对中国的银行业进行了简要的介绍和总结。通过学习本文，应对中国的银行职能和中国银行业的现状有所了解，并了解银行业的发展前景。

本章重点难点本章重点难点中国银行体系

中国各类银行的职能

中国银行业的发展现状

Overview of Unit 4Overview of Unit 4

After learning this unit, you should acquire:

The system of banking in China

The supervisory bodies of banking in China

Different functions of main banks in China

The development and reform in China’s banking

中央银行（中央银行（ central bankcentral bank ））是一个由政府组建的机构，是一个由政府组建的机构，负责控制国家货币供给、信贷条件，监管金融体系，特别是负责控制国家货币供给、信贷条件，监管金融体系，特别是商业银行和其他储蓄机构。商业银行和其他储蓄机构。

中央银行是一国最高的货币金融管理机构，在各国金融中央银行是一国最高的货币金融管理机构，在各国金融体系中居于主导地位。中央银行的职能是宏观调控、保障金体系中居于主导地位。中央银行的职能是宏观调控、保障金融安全与稳定、金融服务。融安全与稳定、金融服务。

中央银行是“发币的银行”，对调节货币供应量、稳定中央银行是“发币的银行”，对调节货币供应量、稳定币值有重要作用。中央银行是“银行的银行”，它集中保管币值有重要作用。中央银行是“银行的银行”，它集中保管银行的准备金，并对它们发放贷款，充当“最后贷款者”。银行的准备金，并对它们发放贷款，充当“最后贷款者”。

Background InformationBackground Information


中央银行是“国家的银行”，它是国家货币政策的制订中央银行是“国家的银行”，它是国家货币政策的制订者和执行者，也是政府干预经济的工具；同时为国家提供金者和执行者，也是政府干预经济的工具；同时为国家提供金融服务，代理国库，代理发行政府债券，为政府筹集资金；融服务，代理国库，代理发行政府债券，为政府筹集资金；代表政府参加国际金融组织和各种国际金融活动。代表政府参加国际金融组织和各种国际金融活动。

中央银行所从事的业务与其他金融机构所从事的业务的中央银行所从事的业务与其他金融机构所从事的业务的根本区别在于，中央银行所从事的业务不是为了营利，而是根本区别在于，中央银行所从事的业务不是为了营利，而是为实现国家宏观经济目标服务，这是由中央银行所处的地位为实现国家宏观经济目标服务，这是由中央银行所处的地位和性质决定的。和性质决定的。

中央银行是“国家的银行”，它是国家货币政策的制订中央银行是“国家的银行”，它是国家货币政策的制订者和执行者，也是政府干预经济的工具；同时为国家提供金者和执行者，也是政府干预经济的工具；同时为国家提供金融服务，代理国库，代理发行政府债券，为政府筹集资金；融服务，代理国库，代理发行政府债券，为政府筹集资金；代表政府参加国际金融组织和各种国际金融活动。代表政府参加国际金融组织和各种国际金融活动。

中央银行所从事的业务与其他金融机构所从事的业务的中央银行所从事的业务与其他金融机构所从事的业务的根本区别在于，中央银行所从事的业务不是为了营利，而是根本区别在于，中央银行所从事的业务不是为了营利，而是为实现国家宏观经济目标服务，这是由中央银行所处的地位为实现国家宏观经济目标服务，这是由中央银行所处的地位和性质决定的。和性质决定的。


中央银行的中央银行的主要业务主要业务有：货币发行、集中存款准备有：货币发行、集中存款准备金、贷款、再贴现、证券、黄金占款和外汇占款、为商金、贷款、再贴现、证券、黄金占款和外汇占款、为商业银行和其他金融机构办理资金的划拨清算和资金转移业银行和其他金融机构办理资金的划拨清算和资金转移的业务等。的业务等。

中央银行的中央银行的主要业务主要业务有：货币发行、集中存款准备有：货币发行、集中存款准备金、贷款、再贴现、证券、黄金占款和外汇占款、为商金、贷款、再贴现、证券、黄金占款和外汇占款、为商业银行和其他金融机构办理资金的划拨清算和资金转移业银行和其他金融机构办理资金的划拨清算和资金转移的业务等。的业务等。


CBRC:CBRC: The China Banking Regulatory Commission The China Banking Regulatory Commission 中中

国银行业监督管理委员会，简称银监会国银行业监督管理委员会，简称银监会 CBRC:CBRC: The China Banking Regulatory Commission The China Banking Regulatory Commission 中中

国银行业监督管理委员会，简称银监会国银行业监督管理委员会，简称银监会


银监会主要职责银监会主要职责

依照法律、行政法规制定并发布对银行业金融机构及其依照法律、行政法规制定并发布对银行业金融机构及其业务活动监督管理的规章、规则；业务活动监督管理的规章、规则；

依照法律、行政法规规定的条件和程序，审查批准银行依照法律、行政法规规定的条件和程序，审查批准银行业金融机构的设立、变更、终止以及业务范围；业金融机构的设立、变更、终止以及业务范围；

对银行业金融机构的董事和高级管理人员实行任职资对银行业金融机构的董事和高级管理人员实行任职资格管理；格管理；

银监会主要职责银监会主要职责

依照法律、行政法规制定并发布对银行业金融机构及其依照法律、行政法规制定并发布对银行业金融机构及其业务活动监督管理的规章、规则；业务活动监督管理的规章、规则；

依照法律、行政法规规定的条件和程序，审查批准银行依照法律、行政法规规定的条件和程序，审查批准银行业金融机构的设立、变更、终止以及业务范围；业金融机构的设立、变更、终止以及业务范围；

对银行业金融机构的董事和高级管理人员实行任职资对银行业金融机构的董事和高级管理人员实行任职资格管理；格管理；


依照法律、行政法规制定银行业金融机构的审慎经营规依照法律、行政法规制定银行业金融机构的审慎经营规则；则；

对银行业金融机构的业务活动及其风险状况进行非现对银行业金融机构的业务活动及其风险状况进行非现场监管，建立银行业金融机构监督管理信息系统，分析、场监管，建立银行业金融机构监督管理信息系统，分析、评价银行业金融机构的风险状况；评价银行业金融机构的风险状况；

对银行业金融机构的业务活动及其风险状况进行现场对银行业金融机构的业务活动及其风险状况进行现场检查，制定现场检查程序，规范现场检查行为；检查，制定现场检查程序，规范现场检查行为；

对银行业金融机构实行并表监督管理；对银行业金融机构实行并表监督管理；

依照法律、行政法规制定银行业金融机构的审慎经营规依照法律、行政法规制定银行业金融机构的审慎经营规则；则；

对银行业金融机构的业务活动及其风险状况进行非现对银行业金融机构的业务活动及其风险状况进行非现场监管，建立银行业金融机构监督管理信息系统，分析、场监管，建立银行业金融机构监督管理信息系统，分析、评价银行业金融机构的风险状况；评价银行业金融机构的风险状况；

对银行业金融机构的业务活动及其风险状况进行现场对银行业金融机构的业务活动及其风险状况进行现场检查，制定现场检查程序，规范现场检查行为；检查，制定现场检查程序，规范现场检查行为；

对银行业金融机构实行并表监督管理；对银行业金融机构实行并表监督管理；


会同有关部门建立银行业突发事件处置制度，制定银行会同有关部门建立银行业突发事件处置制度，制定银行业突发事件处置预案，明确处置机构和人员及其职责、处置业突发事件处置预案，明确处置机构和人员及其职责、处置措施和处置程序，及时、有效地处置银行业突发事件；措施和处置程序，及时、有效地处置银行业突发事件；

负责统一编制全国银行业金融机构的统计数据、报表，负责统一编制全国银行业金融机构的统计数据、报表，并按照国家有关规定予以公布；对银行业自律组织的活动进并按照国家有关规定予以公布；对银行业自律组织的活动进行指导和监督；行指导和监督；

开展与银行业监督管理有关的国际交流、合作活动；开展与银行业监督管理有关的国际交流、合作活动；

会同有关部门建立银行业突发事件处置制度，制定银行会同有关部门建立银行业突发事件处置制度，制定银行业突发事件处置预案，明确处置机构和人员及其职责、处置业突发事件处置预案，明确处置机构和人员及其职责、处置措施和处置程序，及时、有效地处置银行业突发事件；措施和处置程序，及时、有效地处置银行业突发事件；

负责统一编制全国银行业金融机构的统计数据、报表，负责统一编制全国银行业金融机构的统计数据、报表，并按照国家有关规定予以公布；对银行业自律组织的活动进并按照国家有关规定予以公布；对银行业自律组织的活动进行指导和监督；行指导和监督；

开展与银行业监督管理有关的国际交流、合作活动；开展与银行业监督管理有关的国际交流、合作活动；


对已经或者可能发生信用危机，严重影响存款人和其对已经或者可能发生信用危机，严重影响存款人和其他客户合法权益的银行业金融机构实行接管或者促成机构他客户合法权益的银行业金融机构实行接管或者促成机构重组；重组；

对有违法经营、经营管理不善等情形银行业金融机构对有违法经营、经营管理不善等情形银行业金融机构予以撤销；予以撤销；

对涉嫌金融违法的银行业金融机构及其工作人员以及对涉嫌金融违法的银行业金融机构及其工作人员以及关联行为人的账户予以查询；对涉嫌转移或者隐匿违法资关联行为人的账户予以查询；对涉嫌转移或者隐匿违法资金的申请司法机关予以冻结；金的申请司法机关予以冻结；

对已经或者可能发生信用危机，严重影响存款人和其对已经或者可能发生信用危机，严重影响存款人和其他客户合法权益的银行业金融机构实行接管或者促成机构他客户合法权益的银行业金融机构实行接管或者促成机构重组；重组；

对有违法经营、经营管理不善等情形银行业金融机构对有违法经营、经营管理不善等情形银行业金融机构予以撤销；予以撤销；

对涉嫌金融违法的银行业金融机构及其工作人员以及对涉嫌金融违法的银行业金融机构及其工作人员以及关联行为人的账户予以查询；对涉嫌转移或者隐匿违法资关联行为人的账户予以查询；对涉嫌转移或者隐匿违法资金的申请司法机关予以冻结；金的申请司法机关予以冻结；


对擅自设立银行业金融机构或非法从事银行业金融机构对擅自设立银行业金融机构或非法从事银行业金融机构业务活动予以取缔；业务活动予以取缔；

负责国有重点银行业金融机构监事会的日常管理工作；负责国有重点银行业金融机构监事会的日常管理工作；

承办国务院交办的其他事项。承办国务院交办的其他事项。

对擅自设立银行业金融机构或非法从事银行业金融机构对擅自设立银行业金融机构或非法从事银行业金融机构业务活动予以取缔；业务活动予以取缔；

负责国有重点银行业金融机构监事会的日常管理工作；负责国有重点银行业金融机构监事会的日常管理工作；

承办国务院交办的其他事项。承办国务院交办的其他事项。

Unit 4:Unit 4:

• Part I: Part I: 4.1 Supervisory Bodies

• Part II: Part II: 4.2 Domestic Key Players

• Part III:Part III:

4.3 Reforms in the Banking Industry

Banking in ChinaBanking in China

China's banking system has undergone significant changes in China's banking system has undergone significant changes in

the last two decades: banks are now functioning more like banks the last two decades: banks are now functioning more like banks

than before. Nevertheless, China's banking industry has remained than before. Nevertheless, China's banking industry has remained

in the government's hands even though banks have gained more in the government's hands even though banks have gained more

autonomy. China's accession to WTO will lead to a significant autonomy. China's accession to WTO will lead to a significant

opening of this industry to foreign participation.opening of this industry to foreign participation.

Text :Text :

The The central bank of the People's Republic of China is thof the People's Republic of China is th

e People's Bank of China.e People's Bank of China.

The "big four" state-owned commercial banks are the BThe "big four" state-owned commercial banks are the B

ank of China, the China Construction Bank, the Industrial anank of China, the China Construction Bank, the Industrial an

d Commercial Bank of China and the Agricultural Bank of Cd Commercial Bank of China and the Agricultural Bank of C

hina.hina.

Text :Text :

Text :Text :

4.1 Supervisory Bodies4.1 Supervisory Bodies

The People's Bank of China (PBOC) is China’s central The People's Bank of China (PBOC) is China’s central

bank, which formulates and implements monetary policy. The bank, which formulates and implements monetary policy. The

PBOC maintains the banking sector's payment, clearing and PBOC maintains the banking sector's payment, clearing and

settlement systems, and manages official foreign exchange and settlement systems, and manages official foreign exchange and

gold reserves. It oversees the State Administration of Foreign gold reserves. It oversees the State Administration of Foreign

Exchange (SAFE) for setting foreign-exchange policies.Exchange (SAFE) for setting foreign-exchange policies.

4.1 Supervisory Bodies4.1 Supervisory Bodies

The People's Bank of China (PBOC) is China’s central The People's Bank of China (PBOC) is China’s central

bank, which formulates and implements monetary policy. The bank, which formulates and implements monetary policy. The

PBOC maintains the banking sector's payment, clearing and PBOC maintains the banking sector's payment, clearing and

settlement systems, and manages official foreign exchange and settlement systems, and manages official foreign exchange and

gold reserves. It oversees the State Administration of Foreign gold reserves. It oversees the State Administration of Foreign

Exchange (SAFE) for setting foreign-exchange policies.Exchange (SAFE) for setting foreign-exchange policies.

Text :Text :

According to the 1995 Central Bank law, PBOC has full According to the 1995 Central Bank law, PBOC has full

autonomy in applying the monetary instruments, including set in applying the monetary instruments, including set

ting interest rate for commercial banks and trading in governting interest rate for commercial banks and trading in govern

ment bonds. The ment bonds. The State Council maintains oversight of PBOC maintains oversight of PBOC

policies.policies.

According to the 1995 Central Bank law, PBOC has full According to the 1995 Central Bank law, PBOC has full

autonomy in applying the monetary instruments, including set in applying the monetary instruments, including set

ting interest rate for commercial banks and trading in governting interest rate for commercial banks and trading in govern

ment bonds. The ment bonds. The State Council maintains oversight of PBOC maintains oversight of PBOC

policies.policies.

Text :Text :

China Banking Regulatory Commission (CBRC) was officia

lly launched on April 28, 2003, to take over the supervisory role

of the PBOC. The goal of the landmark reform is to improve the

efficiency of bank supervision and to help the PBOC to further f

ocus on the macro economy and currency policy.

China Banking Regulatory Commission (CBRC) was officia

lly launched on April 28, 2003, to take over the supervisory role

of the PBOC. The goal of the landmark reform is to improve the

efficiency of bank supervision and to help the PBOC to further f

ocus on the macro economy and currency policy.

Text :Text :

According to the official Announcement by CBRC posted oAccording to the official Announcement by CBRC posted o

n its website, the CBRC is responsible for "the regulation and sun its website, the CBRC is responsible for "the regulation and su

pervision of banks, asset management companies, trust and invepervision of banks, asset management companies, trust and inve

stment companies as well as other deposit-taking financial institstment companies as well as other deposit-taking financial instit

utions. Its mission is to maintain a safe and sound banking systeutions. Its mission is to maintain a safe and sound banking syste

m in China."m in China."

According to the official Announcement by CBRC posted oAccording to the official Announcement by CBRC posted o

n its website, the CBRC is responsible for "the regulation and sun its website, the CBRC is responsible for "the regulation and su

pervision of banks, asset management companies, trust and invepervision of banks, asset management companies, trust and inve

stment companies as well as other deposit-taking financial institstment companies as well as other deposit-taking financial instit

utions. Its mission is to maintain a safe and sound banking systeutions. Its mission is to maintain a safe and sound banking syste

m in China."m in China."

Text :Text :

STATE-OWNED COMMERCIAL BANKS – THE ‘BIG STATE-OWNED COMMERCIAL BANKS – THE ‘BIG

FOUR’FOUR’

In 1995, the Chinese Government introduced the Commer

cial Bank Law to commercialize the operations of the four state-o

wned banks, the Bank of China (BOC), the China Construction B

ank (CCB), the Agricultural Bank of China (ABC), and the Indus

trial and Commercial Bank of China (ICBC).

STATE-OWNED COMMERCIAL BANKS – THE ‘BIG STATE-OWNED COMMERCIAL BANKS – THE ‘BIG

FOUR’FOUR’

In 1995, the Chinese Government introduced the Commer

cial Bank Law to commercialize the operations of the four state-o

wned banks, the Bank of China (BOC), the China Construction B

ank (CCB), the Agricultural Bank of China (ABC), and the Indus

trial and Commercial Bank of China (ICBC).

4.2 4.2 Domestic Key Players4.2 4.2 Domestic Key Players

Text :Text :

The Industrial & Commerce Bank of China (ICBC) is the

largest bank in China by total assets, total employees and total

customers. ICBC differentiates itself from the other State

Owned Commercial Banks by being second in foreign

exchange business and 1st in RMB clearing business. It used to

be the major supplier of funds to China's urban areas and

manufacturing sector.

The Industrial & Commerce Bank of China (ICBC) is the

largest bank in China by total assets, total employees and total

customers. ICBC differentiates itself from the other State

Owned Commercial Banks by being second in foreign

exchange business and 1st in RMB clearing business. It used to

be the major supplier of funds to China's urban areas and

manufacturing sector.

Text :Text :

The Bank of China (BOC) specializes in foreign-exchange

transactions and trade finance. In 2002, BOC Hong Kong

(Holdings) was successfully listed on the Hong Kong Stock

Exchange. The USD2.8 billion offering was over-subscribed by 7.5

times. The deal was a significant move in the reform of China’s

banking industry.

The Bank of China (BOC) specializes in foreign-exchange

transactions and trade finance. In 2002, BOC Hong Kong

(Holdings) was successfully listed on the Hong Kong Stock

Exchange. The USD2.8 billion offering was over-subscribed by 7.5

times. The deal was a significant move in the reform of China’s

banking industry.

Text :Text :

The China Construction Bank (CCB) specializes in medium t

o long-term credit for long term specialized projects, such as infra

structure projects and urban housing development.

The Agriculture Bank of China (ABC) specializes in providin

g financing to China's agricultural sector and offers wholesale and

retail banking services to farmers, township and village enterprises

(TVEs) and other rural institutions.

The China Construction Bank (CCB) specializes in medium t

o long-term credit for long term specialized projects, such as infra

structure projects and urban housing development.

The Agriculture Bank of China (ABC) specializes in providin

g financing to China's agricultural sector and offers wholesale and

retail banking services to farmers, township and village enterprises

(TVEs) and other rural institutions.

Text :Text :

POLICY BANKS

Three new "policy" banks, the Agricultural Development Ban

k of China (ADBC), China Development Bank (CDB), and the Exp

ort-Import Bank of China (Chexim), were established in 1994 to ta

ke over the government-directed spending functions of the four stat

e-owned commercial banks. These banks are responsible for financi

ng economic and trade development and state-invested projects.

ADBC provides funds for agricultural development projects in

rural areas; the CDB specializes in infrastructure financing, and Ch

exim specializes in trade financing.

POLICY BANKS

Three new "policy" banks, the Agricultural Development Ban

k of China (ADBC), China Development Bank (CDB), and the Exp

ort-Import Bank of China (Chexim), were established in 1994 to ta

ke over the government-directed spending functions of the four stat

e-owned commercial banks. These banks are responsible for financi

ng economic and trade development and state-invested projects.

ADBC provides funds for agricultural development projects in

rural areas; the CDB specializes in infrastructure financing, and Ch

exim specializes in trade financing.

Text :Text :

SECOND TIER COMMERCIAL BANKSSECOND TIER COMMERCIAL BANKS

In addition to the big four state-owned commercial banks, ther

e are smaller commercial banks. The largest ones in this group incl

ude the Bank of Communications, CITIC Industrial Bank, China Ev

erbright Bank, Hua Xia Bank, China Minsheng Bank, Guangdong

Development Bank, Shenzhen Development Bank, China Merchant

s Bank, Shanghai Pudong Development Bank and Fujian Industrial

Bank. The second tier banks are generally healthier in terms of asse

t quality and profitability and have much lower non-performing loa

n ratios than the big four.

SECOND TIER COMMERCIAL BANKSSECOND TIER COMMERCIAL BANKS

In addition to the big four state-owned commercial banks, ther

e are smaller commercial banks. The largest ones in this group incl

ude the Bank of Communications, CITIC Industrial Bank, China Ev

erbright Bank, Hua Xia Bank, China Minsheng Bank, Guangdong

Development Bank, Shenzhen Development Bank, China Merchant

s Bank, Shanghai Pudong Development Bank and Fujian Industrial

Bank. The second tier banks are generally healthier in terms of asse

t quality and profitability and have much lower non-performing loa

n ratios than the big four.

Text :Text :

TRUST AND INVESTMENT CORPORATIONSTRUST AND INVESTMENT CORPORATIONS

In the midst of the reforms of the 1980s, the government established some new investment banks that engaged in various forms of merchant and investment banking activities. However, many of the 240 or so international trust and investment corporations (ITICs) established by government agencies and provincial authorities experienced severe liquidity problems after the bankruptcy of the Guangdong International Trust and Investment Corporation (GITIC) in late 1998. The largest surviving ITIC is China International Trust and Investment Corporation (CITIC), which has a banking subsidiary known as CITIC Industrial Bank.

TRUST AND INVESTMENT CORPORATIONSTRUST AND INVESTMENT CORPORATIONS

In the midst of the reforms of the 1980s, the government established some new investment banks that engaged in various forms of merchant and investment banking activities. However, many of the 240 or so international trust and investment corporations (ITICs) established by government agencies and provincial authorities experienced severe liquidity problems after the bankruptcy of the Guangdong International Trust and Investment Corporation (GITIC) in late 1998. The largest surviving ITIC is China International Trust and Investment Corporation (CITIC), which has a banking subsidiary known as CITIC Industrial Bank.

Text :Text :


Years of government-directed lending has presented Chinese

banks with large amounts of non-performing loans. According to

the Central Bank’s report, non-performing loans account for 21.4

percent to 26.1% of total lending of China’s four big banks in

2002. In 1999, four asset management companies (AMC) were

established to transfer the non-performing assets from the banks.

The AMCs plan to repackage the non-performing loans into viable

assets and sell them off to the investors.


Years of government-directed lending has presented Chinese

banks with large amounts of non-performing loans. According to

the Central Bank’s report, non-performing loans account for 21.4

percent to 26.1% of total lending of China’s four big banks in

2002. In 1999, four asset management companies (AMC) were

established to transfer the non-performing assets from the banks.

The AMCs plan to repackage the non-performing loans into viable

assets and sell them off to the investors.

Text :Text :

PBOC has encouraged banks to diversify their portfolios by inPBOC has encouraged banks to diversify their portfolios by in

creasing their services to the private sector and individual consumecreasing their services to the private sector and individual consume

rs. In July 2000, a personal credit rating system was launched in Shrs. In July 2000, a personal credit rating system was launched in Sh

anghai to be used to assess consumer credit risk and set ratings stananghai to be used to assess consumer credit risk and set ratings stan

dards. This is an important move in developing China’s consumer dards. This is an important move in developing China’s consumer

credit industry, and increase bank loans to individuals.credit industry, and increase bank loans to individuals.

PBOC has encouraged banks to diversify their portfolios by inPBOC has encouraged banks to diversify their portfolios by in

creasing their services to the private sector and individual consumecreasing their services to the private sector and individual consume

rs. In July 2000, a personal credit rating system was launched in Shrs. In July 2000, a personal credit rating system was launched in Sh

anghai to be used to assess consumer credit risk and set ratings stananghai to be used to assess consumer credit risk and set ratings stan

dards. This is an important move in developing China’s consumer dards. This is an important move in developing China’s consumer

credit industry, and increase bank loans to individuals.credit industry, and increase bank loans to individuals.

Text :Text :

The central government has allowed several small banks to raisThe central government has allowed several small banks to rais

e capital through bonds or stock issues. Followed the listing of Shee capital through bonds or stock issues. Followed the listing of She

nzhen Development Bank and Pudong Development Bank, China nzhen Development Bank and Pudong Development Bank, China

Minsheng Bank, the only private bank in China, was listed on the SMinsheng Bank, the only private bank in China, was listed on the S

hanghai Stock Exchange (A-Share) in December 2000. More Chinhanghai Stock Exchange (A-Share) in December 2000. More Chin

ese banks are expected to list in the next two years in order to raise ese banks are expected to list in the next two years in order to raise

capital.capital.

The central government has allowed several small banks to raisThe central government has allowed several small banks to rais

e capital through bonds or stock issues. Followed the listing of Shee capital through bonds or stock issues. Followed the listing of She

nzhen Development Bank and Pudong Development Bank, China nzhen Development Bank and Pudong Development Bank, China

Minsheng Bank, the only private bank in China, was listed on the SMinsheng Bank, the only private bank in China, was listed on the S

hanghai Stock Exchange (A-Share) in December 2000. More Chinhanghai Stock Exchange (A-Share) in December 2000. More Chin

ese banks are expected to list in the next two years in order to raise ese banks are expected to list in the next two years in order to raise

capital.capital.

Text :Text :

CONTROL OF INTEREST RATECONTROL OF INTEREST RATE

The reform of the banking system has been accompanied by P

BOC’s decision to decontrol interest rates. Market-based interest ra

te reform is intended to establish the pricing mechanism of the depo

sit and lending rates based on market supply and demand. The centr

al bank would continue to adjust and guide the interest rate develop

ment, which allows the market mechanism to play a dominant role i

n financial resource allocation.

CONTROL OF INTEREST RATECONTROL OF INTEREST RATE

The reform of the banking system has been accompanied by P

BOC’s decision to decontrol interest rates. Market-based interest ra

te reform is intended to establish the pricing mechanism of the depo

sit and lending rates based on market supply and demand. The centr

al bank would continue to adjust and guide the interest rate develop

ment, which allows the market mechanism to play a dominant role i

n financial resource allocation.

Text :Text :

The sequence of the reform is to liberalize the interest rate

of foreign currency before that of domestic currency, lending b

efore deposit, large amount and long term before small amount

and short term. As a first step, the PBOC liberalized the interest

rates for foreign currency loans and large deposits (US$3 millio

n and over) in September 2000. Rate for deposits below US$3

million remain subject to PBOC control.

The sequence of the reform is to liberalize the interest rate

of foreign currency before that of domestic currency, lending b

efore deposit, large amount and long term before small amount

and short term. As a first step, the PBOC liberalized the interest

rates for foreign currency loans and large deposits (US$3 millio

n and over) in September 2000. Rate for deposits below US$3

million remain subject to PBOC control.

Text :Text :

In March 2002, the PBOC unified foreign currency interest rate

policies for Chinese and foreign financial institutions in China.

Small foreign exchange deposits of Chinese residents with

foreign banks in China were included in the PBOC interest rate

administration of small foreign exchange deposits, so that

domestic and foreign financial institutions are treated fairly with

regard to the interest rate policy of foreign exchange deposits.

In March 2002, the PBOC unified foreign currency interest rate

policies for Chinese and foreign financial institutions in China.

Small foreign exchange deposits of Chinese residents with

foreign banks in China were included in the PBOC interest rate

administration of small foreign exchange deposits, so that

domestic and foreign financial institutions are treated fairly with

regard to the interest rate policy of foreign exchange deposits.

Text :Text :

As interest rate liberalization progressed, the PPOC liberaliz

ed, simplified or abandoned 114 categories of interest rates initial

ly under control since 1996. At present, 34 categories of interest r

ates remain subject to PBOC control. The full liberalization of int

erest rates on other deposit accounts, including checking and savi

ng accounts, is expected to take much longer. On the lending side,

market-determined interest rates on loans will first be introduced

in rural areas and then followed by rate liberalization in cities.

As interest rate liberalization progressed, the PPOC liberaliz

ed, simplified or abandoned 114 categories of interest rates initial

ly under control since 1996. At present, 34 categories of interest r

ates remain subject to PBOC control. The full liberalization of int

erest rates on other deposit accounts, including checking and savi

ng accounts, is expected to take much longer. On the lending side,

market-determined interest rates on loans will first be introduced

in rural areas and then followed by rate liberalization in cities.

Text :Text :

CREDIT CARDSCREDIT CARDS

Between 1985 and 2006, China has issued 714 million

banking cards, of which almost 96% are debit cards. Only 29.13

million of the banking cards are credit cards, and 4 million of these

carry the China UnionPay logo. There are over 110 banking card

issuers in China, which include the ‘big four’ banks (Industrial and

Commercial Bank of China, the Bank of China, China

Construction Bank, and the Agricultural Bank of China), as well as

fast-growing second tier banks and city commercial banks.

CREDIT CARDSCREDIT CARDS

Between 1985 and 2006, China has issued 714 million

banking cards, of which almost 96% are debit cards. Only 29.13

million of the banking cards are credit cards, and 4 million of these

carry the China UnionPay logo. There are over 110 banking card

issuers in China, which include the ‘big four’ banks (Industrial and

Commercial Bank of China, the Bank of China, China

Construction Bank, and the Agricultural Bank of China), as well as

fast-growing second tier banks and city commercial banks.

Text :Text :

As of June 2004, China had approximately 476,000 POS

machines and 64,000 ATMs. About 300,000 merchants in

China accept banking cards.

China's state-owned commercial banks recently began to

issue a dual-currency card, allowing cardholders to purchase

goods within China in RMB and overseas in US dollars.

As of June 2004, China had approximately 476,000 POS

machines and 64,000 ATMs. About 300,000 merchants in

China accept banking cards.

China's state-owned commercial banks recently began to

issue a dual-currency card, allowing cardholders to purchase

goods within China in RMB and overseas in US dollars.

Text :Text :

According to a 2003 research study by VISA, the averag

e per transaction purchase with a card was USD 253. Consu

mers used their credit cards mainly to purchase houses, vehic

les, and home appliances, as well as to pay utility bills.

According to a 2003 research study by VISA, the averag

e per transaction purchase with a card was USD 253. Consu

mers used their credit cards mainly to purchase houses, vehic

les, and home appliances, as well as to pay utility bills.

Text :Text :

MAJOR ISSUE OF CREDIT CARDSMAJOR ISSUE OF CREDIT CARDS

One major issue is the lack of a national credit bureau to provide credit information for banks to evaluate individual loan applicants. In 2002, the Shanghai Information Office and the People’s Bank of China Shanghai branch established the first personal credit data organization involving 15 commercial banks. The Chinese Government, aiming to promote a nationwide credit system, has also set up a credit system research group. At present, large cities, such as Beijing, Guangzhou, Shenzhen, Chongqing, and Chengdu, are calling for a reliable credit data system. The PBOC is currently evaluating the feasibility of establishing a nationwide credit bureau.

MAJOR ISSUE OF CREDIT CARDSMAJOR ISSUE OF CREDIT CARDS

One major issue is the lack of a national credit bureau to provide credit information for banks to evaluate individual loan applicants. In 2002, the Shanghai Information Office and the People’s Bank of China Shanghai branch established the first personal credit data organization involving 15 commercial banks. The Chinese Government, aiming to promote a nationwide credit system, has also set up a credit system research group. At present, large cities, such as Beijing, Guangzhou, Shenzhen, Chongqing, and Chengdu, are calling for a reliable credit data system. The PBOC is currently evaluating the feasibility of establishing a nationwide credit bureau.

Text :Text :

Other obstacles include lack of merchant acceptance and a w

eak infrastructure for card processing. At present, only 2% of mer

chants in China are equipped to handle card transactions, althoug

h in some major cities like Shanghai the percentage is over 30%.

China UnionPay was established to set up a national processing n

etwork connecting merchants and banks. China UnionPay has set

up bankcard network service centers in 18 cities in addition to a n

ational bankcard information switch center.

Other obstacles include lack of merchant acceptance and a w

eak infrastructure for card processing. At present, only 2% of mer

chants in China are equipped to handle card transactions, althoug

h in some major cities like Shanghai the percentage is over 30%.

China UnionPay was established to set up a national processing n

etwork connecting merchants and banks. China UnionPay has set

up bankcard network service centers in 18 cities in addition to a n

ational bankcard information switch center.

Text :Text :

Products and services in the credit card system that the ChinProducts and services in the credit card system that the Chin

ese government wants to develop are credit card-related hardwarese government wants to develop are credit card-related hardwar

e, including POS and ATMs, credit card-related software for bane, including POS and ATMs, credit card-related software for ban

ks and merchants; and Credit and risk management training progks and merchants; and Credit and risk management training prog

rams.rams.

Products and services in the credit card system that the ChinProducts and services in the credit card system that the Chin

ese government wants to develop are credit card-related hardwarese government wants to develop are credit card-related hardwar

e, including POS and ATMs, credit card-related software for bane, including POS and ATMs, credit card-related software for ban

ks and merchants; and Credit and risk management training progks and merchants; and Credit and risk management training prog

rams.rams.

Text :Text :

FOREIGN BANKSFOREIGN BANKS

China’s entry into the WTO is expected to create opportunities China’s entry into the WTO is expected to create opportunities

for foreign banks. As a milestone move to honor its WTO commitmfor foreign banks. As a milestone move to honor its WTO commitm

ents, China released the Rules for ents, China released the Rules for Implementing the Regulations G the Regulations G

overning Foreign Financial Institutions in the People’s Republic of overning Foreign Financial Institutions in the People’s Republic of

China in January 2002. The rules provide detailed regulations for iChina in January 2002. The rules provide detailed regulations for i

mplementing the administration of the establishment, registration, smplementing the administration of the establishment, registration, s

cope of business, qualification, supervision, dissolution and liquidatcope of business, qualification, supervision, dissolution and liquidat

ion of foreign financial institutions. ion of foreign financial institutions.

FOREIGN BANKSFOREIGN BANKS

China’s entry into the WTO is expected to create opportunities China’s entry into the WTO is expected to create opportunities

for foreign banks. As a milestone move to honor its WTO commitmfor foreign banks. As a milestone move to honor its WTO commitm

ents, China released the Rules for ents, China released the Rules for Implementing the Regulations G the Regulations G

overning Foreign Financial Institutions in the People’s Republic of overning Foreign Financial Institutions in the People’s Republic of

China in January 2002. The rules provide detailed regulations for iChina in January 2002. The rules provide detailed regulations for i

mplementing the administration of the establishment, registration, smplementing the administration of the establishment, registration, s

cope of business, qualification, supervision, dissolution and liquidatcope of business, qualification, supervision, dissolution and liquidat

ion of foreign financial institutions. ion of foreign financial institutions.

Text :Text :

They also stipulate that foreign bank branches conducting full

aspects of foreign-currency business and full aspects of RMB

business to all categories of clients are required to have operating

capital of at least 600 million RMB (USD$ 72.3 million), of which

at least 400 million RMB (USD$48.2 million) must be held in

RMB and at least 200 million RMB (USD$24.1 million) in freely

convertible currency.

They also stipulate that foreign bank branches conducting full

aspects of foreign-currency business and full aspects of RMB

business to all categories of clients are required to have operating

capital of at least 600 million RMB (USD$ 72.3 million), of which

at least 400 million RMB (USD$48.2 million) must be held in

RMB and at least 200 million RMB (USD$24.1 million) in freely

convertible currency.

Text :Text :

Client restriction on foreign currency business was lifted i

mmediately after China’s entry into the WTO on December 11,

2001. Since then, foreign financial institutions have been permit

ted to provide foreign currency services to Chinese enterprises a

nd individuals, and have been permitted to provide local currenc

y business to all Chinese clients by the end of 2006.

Client restriction on foreign currency business was lifted i

mmediately after China’s entry into the WTO on December 11,

2001. Since then, foreign financial institutions have been permit

ted to provide foreign currency services to Chinese enterprises a

nd individuals, and have been permitted to provide local currenc

y business to all Chinese clients by the end of 2006.

Text :Text :

Furthermore, when China entered the WTO, geographic restri

ctions placed on RMB-denominated business was phased out in fo

ur major cities—Shanghai, Shenzhen, Tianjin and Dalian. Then, o

n December 1, 2002, foreign-funded banks were allowed to comm

ence RMB-denominated business in Guangzhou, Zhuhai, Qingdao,

Nanjing and Wuhan.

Furthermore, when China entered the WTO, geographic restri

ctions placed on RMB-denominated business was phased out in fo

ur major cities—Shanghai, Shenzhen, Tianjin and Dalian. Then, o

n December 1, 2002, foreign-funded banks were allowed to comm

ence RMB-denominated business in Guangzhou, Zhuhai, Qingdao,

Nanjing and Wuhan.

Text :Text :

A variety of studies that have compared randomly picked

portfolios of stocks with stocks chosen by various

technical rules supports the idea that information about

past movements of stock prices does not help predict the

future. The idea of efficient markets suggests that one

should not place a great deal of faith in any forecasts

about interest rates or stock prices, because if the person

making the forecast really does know what will happen, he

could keep quiet and get rich.

A variety of studies that have compared randomly picked

portfolios of stocks with stocks chosen by various

technical rules supports the idea that information about

past movements of stock prices does not help predict the

future. The idea of efficient markets suggests that one

should not place a great deal of faith in any forecasts

about interest rates or stock prices, because if the person

making the forecast really does know what will happen, he

could keep quiet and get rich.

Text :Text :

ELECTRONIC BANKINGELECTRONIC BANKING

In 1994, China started the "Golden Card Project," enabling

cards issued by banks to be used all over the country through a

network. The establishment of the China Association of Banks

rapidly promoted the inter-bank card network and by the end of

2004, the inter-region-inter-bank network had reached 600 cities,

including all prefecture-level cities and more than 300

economically developed county-level cities.

ELECTRONIC BANKINGELECTRONIC BANKING

In 1994, China started the "Golden Card Project," enabling

cards issued by banks to be used all over the country through a

network. The establishment of the China Association of Banks

rapidly promoted the inter-bank card network and by the end of

2004, the inter-region-inter-bank network had reached 600 cities,

including all prefecture-level cities and more than 300

economically developed county-level cities.

Text : Language PointsText : Language Points

central bankcentral bank A nation's principal monetary authority, such as th

e Federal Reserve Bank, which regulates the money supply and cr

edit, issues currency, and manages the rate of exchange. 中央银行 ( 指代表政府经济利益的银行 , 多与其他银行交易而不直接与普通人民交易 )

eg. We have approached the central bank for credit.

我银行就该信贷已同中央银行联系过。

central bankcentral bank A nation's principal monetary authority, such as th

e Federal Reserve Bank, which regulates the money supply and cr

edit, issues currency, and manages the rate of exchange. 中央银行 ( 指代表政府经济利益的银行 , 多与其他银行交易而不直接与普通人民交易 )

eg. We have approached the central bank for credit.

我银行就该信贷已同中央银行联系过。


autonomyautonomy n. the condition or quality of being autonomous; indep

endence. 自治

eg. National regional autonomy would be instituted in Tibet.

西藏实行民族区域自治。

autonomyautonomy n. the condition or quality of being autonomous; indep

endence. 自治

eg. National regional autonomy would be instituted in Tibet.

西藏实行民族区域自治。


supervisorysupervisory a. 管理的 , 监督的

eg. A Supervisory Committee oversees the trustee and manager

in relation to the administration and management of TraHK.

外汇基金投资有限公司委任的监督委员会，就盈富基金

的管理及行政事务，监督信托人和经理人。

supervisorysupervisory a. 管理的 , 监督的

eg. A Supervisory Committee oversees the trustee and manager

in relation to the administration and management of TraHK.

外汇基金投资有限公司委任的监督委员会，就盈富基金

的管理及行政事务，监督信托人和经理人。


State CouncilState Council 国务院 eg. The Environmental Protection Committee under the State Co

uncil is made up of leaders of various related ministries under the

State Council. It is the State Council's consultancy and coordinati

on agency for environmental protection work.

国务院环境保护委员会由国务院有关部门的领导成员组成，是国务院环境保护工作的议事和协调机构。

State CouncilState Council 国务院 eg. The Environmental Protection Committee under the State Co

uncil is made up of leaders of various related ministries under the

State Council. It is the State Council's consultancy and coordinati

on agency for environmental protection work.

国务院环境保护委员会由国务院有关部门的领导成员组成，是国务院环境保护工作的议事和协调机构。


domesticdomestic a. of or relating to a country‘s internal affairs 国内的

eg. These products are domestic.

这些产品是国产的。

Domestic Trade

国内贸易国内贸易

domesticdomestic a. of or relating to a country‘s internal affairs 国内的

eg. These products are domestic.

这些产品是国产的。

Domestic Trade

国内贸易国内贸易


listlist v. （证券）上市

eg. The stock of ICBC is listed in the Wall Street.

中国工商银行的股票在华尔街上市。

listlist v. （证券）上市

eg. The stock of ICBC is listed in the Wall Street.

中国工商银行的股票在华尔街上市。


policy bankpolicy bank 政策性银行 eg. The Export Import Bank of China (China Exim Bank), the

country's export oriented policy bank, has decided to increase s

upport for Chinese companies which invest in foreign countries

or sell products overseas.

中国进出口银行是以出口为导向的政策性银行。目前它已决定加大对在海外投资和向海外出售商品的中国公司的支持力度。

policy bankpolicy bank 政策性银行 eg. The Export Import Bank of China (China Exim Bank), the

country's export oriented policy bank, has decided to increase s

upport for Chinese companies which invest in foreign countries

or sell products overseas.

中国进出口银行是以出口为导向的政策性银行。目前它已决定加大对在海外投资和向海外出售商品的中国公司的支持力度。


tiertier n. one of a series of rows placed one above another 层，

级

eg. To solve thc problem, the Americans observe their holidays

on a two-tier system.

为了解决这个问题，美国的假日有两套系统。

tiertier n. one of a series of rows placed one above another 层，

级

eg. To solve thc problem, the Americans observe their holidays

on a two-tier system.

为了解决这个问题，美国的假日有两套系统。


repackagerepackage v. to package again or anew, especially in a more

attractive package 重新包装

eg. The back-to-back structure allows banks to effectively 're

package' their mortgage portfolios into more liquid portfolios an

d to maintain the majority of the cash flow if they hold the MBS

in their own investment portfolio.

凭藉按揭证券背对背结构，银行可以有效地把按揭组合“重新包装”，变成流动性更高的组合；银行如保留按揭证券为投资组合的一部分，也可以保留大部分现金流量。

repackagerepackage v. to package again or anew, especially in a more

attractive package 重新包装

eg. The back-to-back structure allows banks to effectively 're

package' their mortgage portfolios into more liquid portfolios an

d to maintain the majority of the cash flow if they hold the MBS

in their own investment portfolio.

凭藉按揭证券背对背结构，银行可以有效地把按揭组合“重新包装”，变成流动性更高的组合；银行如保留按揭证券为投资组合的一部分，也可以保留大部分现金流量。


viableviable a. capable of success or continuing effectiveness; practi

cable 可行的 ; 可望成功的或有持续效果的；切实可行的 eg. Nothing in the current situation suggests that it is more via

ble today.

从目前的情况看来，它依然是行不通的。

viableviable a. capable of success or continuing effectiveness; practi

cable 可行的 ; 可望成功的或有持续效果的；切实可行的 eg. Nothing in the current situation suggests that it is more via

ble today.

从目前的情况看来，它依然是行不通的。


pricing mechanismpricing mechanism 定价机制 eg. In recent years, the Chinese government has started to trial-i

mplement a pricing mechanism for the labor market, in order to

enable the market mechanism to play its basic regulatory role in

the allocation of labor resources, wage formation and labor flow.

近年来，中国政府开始探索建立劳动力市场价格形成机制，发挥市场机制在劳动力资源配置、工资形成和劳动力流动中的基础性调节作用。

pricing mechanismpricing mechanism 定价机制 eg. In recent years, the Chinese government has started to trial-i

mplement a pricing mechanism for the labor market, in order to

enable the market mechanism to play its basic regulatory role in

the allocation of labor resources, wage formation and labor flow.

近年来，中国政府开始探索建立劳动力市场价格形成机制，发挥市场机制在劳动力资源配置、工资形成和劳动力流动中的基础性调节作用。


liberalizeliberalize v. to make liberal or more liberal 使自由化，放宽对…的限制 eg. As a forum for trade negotiations in which the trade environ

ment is liberalized and made more predictable either through the

opening of national markets or through the reinforcement and ext

ension of the rules themselves;

作为贸易谈判的论坛，无论是通过国内市场的开放还是规则本身的加强和延伸，其贸易环境已更趋自由与可预测。

liberalizeliberalize v. to make liberal or more liberal 使自由化，放宽对…的限制 eg. As a forum for trade negotiations in which the trade environ

ment is liberalized and made more predictable either through the

opening of national markets or through the reinforcement and ext

ension of the rules themselves;

作为贸易谈判的论坛，无论是通过国内市场的开放还是规则本身的加强和延伸，其贸易环境已更趋自由与可预测。


China UnionPayChina UnionPay 中国银联China UnionPayChina UnionPay 中国银联


issueissue n. a point or matter of discussion, debate, or dispute论点 , 问题

eg. a burning issue

紧要的问题；热烈争论的问题

currency issue system

货币发行制度

issueissue n. a point or matter of discussion, debate, or dispute论点 , 问题

eg. a burning issue

紧要的问题；热烈争论的问题

currency issue system

货币发行制度


obstacleobstacle n. One that opposes, stands in the way of, or holds

up progress. 妨害物 ; 反对或阻碍进步的事物

eg. Love grows with obstacle.

磨难越多，情爱愈笃。

A great obstacle confronted them.

他们遇上一个大障碍。

obstacleobstacle n. One that opposes, stands in the way of, or holds

up progress. 妨害物 ; 反对或阻碍进步的事物

eg. Love grows with obstacle.

磨难越多，情爱愈笃。

A great obstacle confronted them.

他们遇上一个大障碍。


implement v. to put into practical effect; carry out贯彻 , 实现，

执行

eg. We should implement the standard operating procedures.

我们应该执行标准操作程序。

implement v. to put into practical effect; carry out贯彻 , 实现，

执行

eg. We should implement the standard operating procedures.

我们应该执行标准操作程序。


convertibleconvertible a. （ abbr. conv. ） lawfully exchangeable for g

old or another currency 可兑换的；可合法兑换成金子或另一种货币

eg. We'll provide for payments in convertible currency.

我们将以可自由兑换的货币付款。

a convertible security

可兑换的证券

convertible money

可兑换（黄金）纸币

convertibleconvertible a. （ abbr. conv. ） lawfully exchangeable for g

old or another currency 可兑换的；可合法兑换成金子或另一种货币

eg. We'll provide for payments in convertible currency.

我们将以可自由兑换的货币付款。

a convertible security

可兑换的证券

convertible money

可兑换（黄金）纸币

ExercisesExercises

Paraphrase the following abbreviations and then give their Chinese names

1. PBOC 6. CDB

2. BOC 7. Chexim

3. CCB 8. CEB

4. ABC 9. ADBC

5. ICBC 10. CBRC

1. PBOC 6. CDB

2. BOC 7. Chexim

3. CCB 8. CEB

4. ABC 9. ADBC

5. ICBC 10. CBRC

Check-upCheck-up Check-upCheck-up

Exercises-KeysExercises-Keys

1. People’s Bank of China 中国人民银行

2. Bank of China 中国银行

3. China Construction Bank 中国建设银行

4. Agricultural Bank of China 中国农业银行

5. Industrial and Commercial Bank of China 中国工商银行

1. People’s Bank of China 中国人民银行

2. Bank of China 中国银行

3. China Construction Bank 中国建设银行

4. Agricultural Bank of China 中国农业银行

5. Industrial and Commercial Bank of China 中国工商银行


6. China Development Bank 6. China Development Bank 国家开发银行国家开发银行

7. Export-Import Bank of China 7. Export-Import Bank of China 中国进出口银行中国进出口银行

8. China Everbright Bank 8. China Everbright Bank 中国光大银行中国光大银行

9. Agricultural Development Bank of China 9. Agricultural Development Bank of China 中国农业发展银中国农业发展银

行行

10. China Banking Regulatory Commission 10. China Banking Regulatory Commission 中国银行业监督管中国银行业监督管

理委员会理委员会

6. China Development Bank 6. China Development Bank 国家开发银行国家开发银行

7. Export-Import Bank of China 7. Export-Import Bank of China 中国进出口银行中国进出口银行

8. China Everbright Bank 8. China Everbright Bank 中国光大银行中国光大银行

9. Agricultural Development Bank of China 9. Agricultural Development Bank of China 中国农业发展银中国农业发展银

行行

10. China Banking Regulatory Commission 10. China Banking Regulatory Commission 中国银行业监督管中国银行业监督管

理委员会理委员会

ExercisesExercises

Fill in the blanks with the proper words

charge payments interest merchant buy

consumer plastic contrast unions issuer

ExercisesExercises

A credit card is part of a system of ________ named after t

he small ________ card issued to users of the system. It is a car

d entitling its holder to ________ goods and services based on t

he holder's promise to pay for these goods and services. The __

______ of the card grants a line of credit to the ________ (or th

e user) from which the user can borrow money for payment to a

________ or as a cash advance to the user.

A credit card is part of a system of ________ named after t

he small ________ card issued to users of the system. It is a car

d entitling its holder to ________ goods and services based on t

he holder's promise to pay for these goods and services. The __

______ of the card grants a line of credit to the ________ (or th

e user) from which the user can borrow money for payment to a

________ or as a cash advance to the user.

Check-upCheck-up

ExercisesExercises

A credit card is different from a ________card, where a char

ge card requires the balance to be paid in full each month. In ___

_____, credit cards allow the consumers to 'revolve' their balanc

e, at the cost of having ________ charged. Most credit cards are

issued by local banks or credit ________, and are the shape and

size specified by the ISO 7810 standard

A credit card is different from a ________card, where a char

ge card requires the balance to be paid in full each month. In ___

_____, credit cards allow the consumers to 'revolve' their balanc

e, at the cost of having ________ charged. Most credit cards are

issued by local banks or credit ________, and are the shape and

size specified by the ISO 7810 standard

Check-upCheck-up


A credit card is part of a system of payments named after th

e small plastic card issued to users of the system. It is a card enti

tling its holder to buy goods and services based on the holder's p

romise to pay for these goods and services. The issuer of the car

d grants a line of credit to the consumer (or the user) from which

the user can borrow money for payment to a merchant or as a ca

sh advance to the user.

A credit card is part of a system of payments named after th

e small plastic card issued to users of the system. It is a card enti

tling its holder to buy goods and services based on the holder's p

romise to pay for these goods and services. The issuer of the car

d grants a line of credit to the consumer (or the user) from which

the user can borrow money for payment to a merchant or as a ca

sh advance to the user.


A credit card is different from a charge card, where a cha

rge card requires the balance to be paid in full each month. In

contrast, credit cards allow the consumers to 'revolve' their ba

lance, at the cost of having interest charged. Most credit cards

are issued by local banks or credit unions, and are the shape a

nd size specified by the ISO 7810 standard

A credit card is different from a charge card, where a cha

rge card requires the balance to be paid in full each month. In

contrast, credit cards allow the consumers to 'revolve' their ba

lance, at the cost of having interest charged. Most credit cards

are issued by local banks or credit unions, and are the shape a

nd size specified by the ISO 7810 standard

ExercisesExercises

Topic for discussionTopic for discussion

If you are a banker, what are If you are a banker, what are the main business you would the main business you would

like your bank to operate?like your bank to operate?

If you are a banker, what are If you are a banker, what are the main business you would the main business you would

like your bank to operate?like your bank to operate?

AssignmentsAssignments

1.1. Review the Text .Review the Text .

2.2. Keep in mind the special teKeep in mind the special te

rms learned in this Unit.rms learned in this Unit.

3.3. Do exercises in the book.Do exercises in the book.

unit 4: banking in china

Documents