Write a 5 pages paper on development of the banking system in india and china. It is evidently clear from the discussion that the transformation of India and China has led to strong implications to th

Write a 5 pages paper on development of the banking system in india and china. It is evidently clear from the discussion that the transformation of India and China has led to strong implications to the other countries in the world. The emergence of both countries as economic giants serves as a wakeup call for the states that are already developed. It is indeed true that both countries possess reform-minded government and cheap labor in favor of huge domestic markets and market-oriented economies. China and India have proved to be capable of maintaining and managing strong economies as well as maintaining the high growth rate that is roughly eight percent for India and nine percent for China over the past years. It is essential to note that the high rate of growth for the two countries is critical since the government depends on it to generate employment for millions of people that joining the labor force every year. Such are some of the limitations both economies are facing as they strive toward becoming world economic giants. It is therefore unfair for developed nations to enact trade barriers targeting the two emerging nation and should work towards integrating and engaging them in global economies. Basing on the banking industry, it is true that China and India share many attributes, especially in terms of the structure of the industries. In addition, both countries depend on the banking system as a source of finance to support the growth of the economy since the capital markets are less developed. The Chinese banking sector, for example, represents more than ninety percent of the assets present in the financial sector. India, on the other hand, is represented by only seventy-four percent based on the total financial assets. The balance is topped up by the nonbank financial institutions in India in which 15.4 are investment institutions while 8.6 percent are term lending institutions. In China, however, such institutions can be considered as banking institutions in some ways. Additionally, the commercial banking sector proportion is expected to be on the rise in the coming years.