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Banking Failures in China includedChina Agricultural Development Trust and Investment Company in January 1997, The Hainan Development Bank in June 1998, and the Guangdong International Trust and Investment Company (GITIC) in October 1998. in 1999 State Owned Banks account for 60% of the financial systemIn China- The largest state-owned banks, which despite the creation of a large number of new banks and other financial institutions still account for more than three-fifths of the assets of the entire financial system. in 1999 Chinese Banks Used to Overstate EarningsChina's economy was not helped by the practice of many Chinese banks including interest payments in their earnings and vastly overstating their profits. This was because of the practice of capitalising interest payments and accruing interest on non-performing loans. The most systematic evidence on this practice is for the China Construction Bank (CCB). For the four years 1993–96, the CCB reported annual profits that cumulated to RMB 11.608 billion. If income is reduced by the amount of accrued interest, however, over this period the bank actually lost RMB 22.410 billion. In 1994, the year of the greatest disparity, actual losses (i.e. the level of reported profits minus interest income recorded but not actually received) were almost three times reported profits.9 Pre-tax profits of China’s specialised banks (1985–97) Link to China's Finanical Regulatory Authority Updated August 2004 Chinese Bank Regulations.
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