Minsheng bank Essay Example | Topics and Well Written Essays - 500 words

Minsheng bank - Essay Example The regulation of various industries by the government is intended to influence the manner in which an economy is run. The banking industry in China is highly regulated by the Chinese government, but this does not rule out the coexistence of both public and private sectors in the Chinese economy. Minsheng bank operates alongside state-owned banks which constitute the basis in which Minsheng and other private commercial banks are regulated in China. The effects of government regulation impact differently on different enterprises, companies, or organizations. Government regulation has its benefits and shortcomings. On the positive side, the imposition of regulations by the government does not only protect consumer interests, but also the interests of all players and stakeholders in the industry. The consumer is safeguarded from exploitation by the operating enterprises. On the other hand, government regulation creates cohesion in the industry, making it possible for the markets involved to exhibit fair competition. Such moves treat all players in the industry equally, thereby enhancing economic growth and development in regard to the contribution of all operational firms in the industry. On the other hand, government regulation curtails the full potential of an enterprise. It limits the expansion capacity of a company, in the event that the company’s expansion strategies are not consistent with the government’s provisions at that time. Government regulation also interferes with market autonomy and free market activities, thus limiting the liberalization factor in the global arena. In this respect, the public sector appears to be relatively favored by the government due to the priorities it is accorded within the regulation process. In the light of government regulation, another significant business strategy emerges in the global banking industry; acquisition. The substantial regulation of Chinese markets and