From The World Economic Development Trend Of China's Policy Banks

"Policy bank"refers to the bank invested to finance by government, which is obviously a kind of intervention in the markets. But it is setting up more and more in the world instead of dieing out. Moreover, it is accepted by some economists and taken as reasonable. Why? As they say, it's hard for market to restore equity by itself while unfair competition appears. So that government has to involve in it. Of course, each government have to protect local companies in their own country.There are more than 80 institutions of this kind in the world such as Export Credits Guarantee Department, ECGD,in England, Export-Import Bank of the United States, Export Development Corporation, EDC, in Canada, Japan Bank for International Cooperation, JBIC, German Euler Hermes and France Coface etc. In 1994, China Development Bank, The Export-import bank of China and Agricultural Development Bank of China were registered one after another which are called"Three Famous Chinese Policy Banks". They all have done well and satisfied by our government in helping local companies to improve their international competition.With development of international market, the three policy banks in China above mentioned are facing lots of problems. One is Chinese Companies have grown up and they can face international competition from other countries without help of government. The other is no bank in the world can survive in payoff without profit. What will these policy banks do in the future? Different People has different mind. As I see, Three famous Chinese policy banks can't become commercial banks and compete against each other. They should be the windows of government and cooperate with Chinese commercial banks in support Chinese companies.