Under the agreement that signed in the Swiss ski resort of Davos, China gives Switzerland an 8-billion-US-dollar investment quota under its Qualified Foreign Institutional Investor program, and the two sides plan to open a Chinese bank in Zurich for future RMB clearance. Official figures show that the volume shot up from an equivalent of 580 million dollars in 2009 to 1.3 trillion dollars in the first 10 months of 2014.
According to an report released on Tuesday by London-based PricewaterhouseCooper's — Analysis of China's Top 10 Listed Banks Results for 2013, China's top 10 listed banks are operating smoothly, expanding the size of their assets and liabilities and maintaining earnings growth while exhibiting a clear downward trend in terms of the quality of their credit assets.
China's financial system is highly regulated and has recently begun to expand rapidly as monetary policy becomes integral to its overall economic policy. As a result, banks are becoming more important to China's economy by providing increasingly more finance to enterprises for investment, seeking deposits from the public to mop up excess liquidity, and lending money to the government.
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