China Briefings
Reports on China issued by Samsung Economic Research Institute
Amid the slowdown in economic growth, China's state-owned banks are facing difficulties with the revenue of the top five state-owned banks lagging far behind private banks. Their lackluster performance is mostly evident in profitability and growth as the existing revenue model loses its effectiveness. While private banks have weathered the risks of the reform by innovating themselves, state-owned banks are still ridden with inefficiencies, failing to increase their revenue from intermediary businesses. As such, state-owned banks need to find a new source for revenue to increase the share of intermediary businesses.
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