China’s banking sector: trends and development problems

The article reveals the distinctive features of the banking sector of the People’s Republic of China. Based on the assessment of the dynamics of key indicative indicators, the main directions and features of the development of the banking sector of the People’s Republic of China are determined. The trends in the provision of banking services in the context of the main categories of consumers are revealed. The influence of global trends in the banking business and the global financial system on the change in the banking sector of the People’s Republic of China is outlined, the main directions of digital transformation of this sector are highlighted. The main problems of the development of the Chinese banking sector are revealed - strict government regulation; “soft” restrictions in the field of fiscal subsidies and customer lending; the presence of a large-scale shadow system of non-bank financial institutions performing operations functionally related to banking; a high level of creditworthiness of the population and the growth of non-performing loans (NPL).