Chinese banks have made headlines recently, but what lies beneath? Banking in China appears different. What explains the current arrangement? What can we expect from this banking industry in future? Banking in China answers these two questions in a fully-revised second edition and contributes to a new understanding of Chinese banks. It offers an in-depth analysis of the Chinese banking sector, of its challenges, and the reasons for its present form, as well as the implications for reform. Violaine Cousin analyses the industry's critical issues such as financial intermediation, capital and credit risk management, corporate governance, and identifies the challenges ahead relating to retail banking, Basel II and the WTO membership. She has remodelled her in-depth discussion of the types of bank operating in China to reflect recent changes. The part on regulations has fully been revised and all data have been fully updated to reflect the latest developments and financial information.