Please enable JavaScript.
Coggle requires JavaScript to display documents.
Banking Reform - Coggle Diagram
Banking Reform
Why
Non-performing loans
body metaphore
Solutions Proposed
(a) strengthen the internal control of Chinese banks
(b) change the banks’ operation modes
he didnt think the outside investors would buy the large banks since they had non-performing loan problem
but they did while having 2 conditions
(a) their purchasing price of shares could be adjusted down to reflect any extra discovery of non-performing loans in the related Chinese banks;
the state owned banks needed them to set better loan conditions and import good banking practises from abroad
not all tho
1 more item...
to employ CEOs from other countries that had a corruption free banking culture to avoid corruption
three-year repurchase guarantee which would allow the foreign strategic partners to sell the shares back to the related Chinese banks under certain pre-specified conditions
More general steps to clean corruption
start with the banking sector
1 more item...
One of the most important factors that convinced the foreign strategic partners to take up the share offer was actually the planned IPOs of these state-owned com- mercial banks which would mean potentially huge investment profits and possibility of exit for the foreign strategic partners.
they were promoting the shares of these IPOs resulting in large scale indivisual investor investment and lasrge injection in the market
3 Injections
governement
1 more item...
foreign strategic investors
1 more item...
IPOs
1 more item...
If this wouldnt have happened
after China joining the WTO foreign commercial banks would
buy smaller chinese banks and set good loan conditions and slowly grow and expand
1 more item...