The Institutional Transition Of The Banking System In China (1949-2004)

After China's entry into WTO, as the most vibrant and most competitive industry, the banking industry is facing the hyper-competition. Study on the process of China's banking system transition could work out the useful experience, learn from the failure cases, and further help to reform the banking institution.Institutional transition is a critical part of the institution economics. Neo-institution economics divides the institutional transition into two types: caused and compulsory one. Through investigating the historical process of banking institution reform after the establishment of new China, we can find out that the two institutional transitions proceeded alternately: in one certain period, the compulsory institutional transition dominated the process; while in another certain period, the institutional transition was labeled with the strong compulsory factor.In terms of partition of banking transitional period, besides taking the internal change of banking institution into account, the paper covers the influence the change of economical environment imposed on the banking institution. After weighing the degree of impact to which every factor cast, it classifies the transition of banking institution, i.e. from unitary system, through dualistic system, to the pluralistic systemThe development of the economics theory plays a important role in the institutional transition of the banking industry. The theory originates from practice and in return could guide it. The paper attempts to figure out the association between the theory of the banking institution and the institutional transition of the banking industry. As to the debate over how to enhance the resolution to the practical problem, the paper lies a first eye on it.The paper also compares the paths of the transition of the banking system among China, U.S.A and Germany. By contrast with the matures banking systems of both U.S.A and Germany with respectively paths, we can find out many characteristics and problems in the process of the Chinese banking industry evolvement; recognize the benefits and limitation for the China's banking institutional transition.Finally, the author anticipates the future of the China banking institution and gives some suggestions.