Are Chinese Banks Positioned to Compete in the Post-WTO Environment?

With the full liberalization of Chinese markets in 2007 due to China's membership in the World Trade Organization (WTO), Chinese banks are receiving more attention than ever on their readiness to compete with established foreign banks. We provide an explorative study to compare Chinese banks with U. S. banks in terms of bank size, growth rate, liquidity risk, profitability, efficiency, and capital adequacy. We believe that the Chinese banking reforms started in 1998 have achieved moderate success in preparing the Chinese banks to enter the international arena.