Abstract
This paper describes post-1978 reform to the Chinese banking system towards specialized banks for development purposes. The writer notes that it has taken time to adjust to the new liberalized environment and demands of capitalism. Further, the writer points out the corruption due to the new access to money and looks at old socialist hiring structures and procedures. The writer also discusses competition from newly admitted foreign banks and notes the mentality that does not see change as an ongoing process.

From the Paper
"Economists examining socialist systems often seem to fail to look closely at the banking system that is in place, as a fundamental institution of all economies. In the People's Republic of China (PRC), this sector is most interesting due to changes since the shift to Deng's 1978 Reform agenda. Clearly, the PRC would require new institutions that were able to support capitalist activities that would be both domestic, and in the end, involve different foreign interests, too. "

Tags:prc, banking1978, reform, problems