Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 06GUANGZHOU18103, PAS Speaker Barth Relates U.S. Banking Experience

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06GUANGZHOU18103.
Reference ID Created Released Classification Origin
06GUANGZHOU18103 2006-06-21 08:37 2011-08-23 00:00 UNCLASSIFIED Consulate Guangzhou
VZCZCXRO5798
RR RUEHCN RUEHGH
DE RUEHGZ #8103/01 1720837
ZNR UUUUU ZZH
R 210837Z JUN 06
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 1444
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/USDOC WASHDC
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC
RHHMUNA/HQ USPACOM HONOLULU HI
UNCLAS SECTION 01 OF 02 GUANGZHOU 018103 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINV KPAO CH
SUBJECT: PAS Speaker Barth Relates U.S. Banking Experience 
to China 
 
 
1. SUMMARY:  Visiting speaker James Barth spoke to banking 
regulators, attorneys, and students in Guangzhou about the 
development of financial systems and similarities between 
the U.S. and China experience.  He highlighted the role of 
governments in banking industry bailouts, foreign ownership 
of banks, and the futility of imposing a universal model for 
financial regulation.  Attendees appreciated Barth's 
enthusiastic presentations and participated eagerly in the 
discussions.  END SUMMARY 
 
2. James Barth is a participant in the China Mission's 
visiting speakers program.  He is currently the Lowder 
Eminent Scholar in Finance at Auburn University and a Senior 
Fellow at the Milken Institute.  He recently served as 
leader of an international team advising the People's Bank 
of China on banking reform and coauthored a book titled 
"Rethinking Bank Regulation and Supervision: Till Angels 
Govern".  During his June 13-14 visit to Guangzhou, Barth 
held separate meetings with officials from the China Banking 
and Regulatory Commission, attorneys from H.J.M. law office, 
and students and professors from Sun Yatsen and South China 
Normal universities. 
 
Similarities with the U.S. Experience 
------------------------------------- 
 
3. In his presentations, Barth drew parallels between the 
development of financial systems in the United States and 
China.  For example, during the first 60 years of the United 
States, U.S. banks were owned by state governments, with 
politicians sitting on boards and ordering loans to 
particular companies or industries.  Separately, U.S. banks 
in the 1980's earned approximately 90 percent of their 
income from interest rates, similar to China's banks today. 
Since then, U.S. banks have developed a number of services, 
the fees of which account for half of their total income. 
Lastly, the U.S. banking industry was faced with massive non- 
performing loans in the late 1980's, in part because of 
overinvestment in the real estate sector.  To avert a 
widespread crisis, the U.S. government spent USD 200 billion 
to bail out its banks -- reflecting China's current efforts 
to recapitalize its own banks. 
 
China Has Room to Improve 
------------------------- 
 
4. Barth also contrasted the characteristics of the U.S. and 
Chinese financial systems.  China's system is oriented 
toward banking (with the big four state-owned banks 
accounting for over half of the industry's assets).  The 
U.S. system, however, is capital market intensive, with 
stock and bond markets serving as key sources of funding for 
companies.  Chinese companies thus are without a "spare 
tire" -- in the event of a banking collapse, companies 
cannot easily generate money from alternate sources.  Barth 
also noted the lack of deposit insurance in the Chinese 
system.  Deposit insurance, which guarantees that investors 
will recap their money in the event of a banking crisis, is 
a vital part of any healthy banking system.  Fortunately 
China is reportedly drafting just such a law.  Barth also 
said that China needs to increase the amount of banks loans 
to small and medium enterprises.  He discussed his 
successful efforts to convince U.S. banks that a low-rate 
credit card for SMEs is profitable. 
 
Who Should Control the Banks? 
----------------------------- 
 
5. During discussions, participants revealed a particular 
interest on the role of the private sector and foreign 
ownership in China's banking industry.  Barth estimated that 
98 percent of China's banking industry is controlled by the 
government, in comparison to none in the United States and 
United Kingdom.  He said foreign investment undeniably 
brings benefits to the banking industries of developing 
countries, including managerial skills, technology, and 
funding.  Nevertheless, there is no definitively "correct" 
amount of foreign investment for all countries.  Both the 
United States and New Zealand have healthy banking 
industries, despite the fact that foreign ownership in the 
U.S. banking industry is 20 percent while in New Zealand it 
is 98 percent.  In China's case, Barth said the government 
is pursuing a logical course by targeting foreign ownership 
in particular regions and in smaller banks before opening up 
its big four banks. 
 
A Universal Model Does Not Exist 
-------------------------------- 
 
GUANGZHOU 00018103  002 OF 002 
 
 
 
6.  Students and regulators reacted positively to Barth's 
enthusiastic presentation style as well as the substance of 
his talks.  They asked questions about the effect of the 
Sarbanes-Oxley Act on U.S. competitiveness, China's real 
estate boom, and the ideal model for regulation of a 
financial industry.  In response to the latter question, 
Barth said no such model exists and those who proclaim a 
universal solution are misguided.  Each country is unique, 
particularly in the development stage of their government 
and commercial institutions, and thus each requires a 
different model.  Indeed, a country may have "beautiful" 
financial laws, which exactly reflect those used by the most 
developed countries, but still suffer from slow growth and 
weak capital markets. 
 
Comment 
------- 
 
7.  It is noteworthy that so many students were interested 
in what is ordinarily considered a dry subject.  This may be 
in part because the Chinese press has made China's financial 
industry an everyday topic.  Regardless, educated Chinese 
people realize that their country's financial institutions 
are in fact important to their lives and seem genuinely 
interested in learning from the U.S. experience. 
 
DONG