BACKGROUND
Explaining the organization of China’s banking system is crucial to understanding its financial structure. China’s banking sector has expanded exponentially “from $10.2 trillion in 2009 to $41.6 trillion at the end of 2019”, making it the largest banking sector in the world (Bisio 4). It also wields the greatest presence in China’s financial sector, making up more than 80% of all assets held by financial institutions while providing two-thirds of all the credit to the economy in 2019 which also held true at the time of the crisis (4). There is a fundamental difference between…
