Overview Of The Land Bank Of China (1926-1937)

The land bank of china was one of special banks, which was established by the Northern Government in its late times. Actually, it's carrying on general commercial banking business. The bank was set up in 1926 through several restructuring, culminating in the successful restructuring in March 1929, the headquarters moved to Shanghai at that time. Then its development was on the right track. Because of its flexible modes of operation, their strength increased bigger and bigger, the land bank of china has been became one of the eight major commercial banks in the Republic of China. In this paper, the research is on the land bank of china, selecting the 1926-1937 period as a research period. This paper analysis the land bank of china's organizational structure of banking industry, notes and business, revealing the changes in China's history processes of banking industry。April 14, 1926, the land bank of china was established in Tianjin and obtained the right of issue banknotes. In its early time, the business of the land bank of china was bad, only made same development on the note issuance. But on the effect of the Council of the Northern Government, the development of the bank was still at a standstill, though it was after several unsuccessful restructure. When in the March of 1929, the land bank of china carried on another organization, the headquarters of it moved to Shanghai, and then its business has developed rapidly. The land bank allocated additional one hundred thousand yuan to attached the department of savings, independently operated business, accounting opened to the public. Property Division of the land bank of china was established in 1931, operating the mortgage loans of real estate. With its strength increasingly strong, the land back of china has been set up new branches in the economic and transport developed areas. In Shanghai, Tianjin, Peking, Ningbo, Yuyao, Nanjing and other places were set up branches or offices of 11 departments before the outbreak of the Sino-Japanese War.The land bank of china was well known as one of banks in"Ningbo system". Before the restructuring in 1929, the people of Ningbo had acted as the founders, the managers, and even to the person who took over the restructuring work. After 1929, the board directors was all by the people of Ningbo who from Zhejiang province. From that time, it has been introduced advanced banking organizations, and every department acted their duty, strengthened the management, and improved the efficiency. The bank notes circulation was extended to the Yangtze River region and North China after the restructured work. And bring the established offices in various regions. To ensure the security of notes issued as well as to improve its credibility, from august 13, 1932, the bank would public examined the issue of reserve every month until the right of issue notes was canceled. Savings as an important source of funding, the land lank actively cultivated many forms of deposit, so the savings total was continue to increasing. At the same time it reinforced the collaboration between banks, emphasized lending activities with the Government, and participated in the financial sector's movement of promote domestic products.