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Limitations of interviews Essay Despite the advantages associated with interviews, a number of limitations must also be acknowledged. For example they are time-consuming; one of the biggest weaknesses could be the ability to interview only a sample population, raising concerns with the generalization of findings. As a consequence, in this investigation, the use of multiple sources of data has been conceived to validate qualitative data, as the degree to which archival data, interviews, and document analysis converge makes the conclusions about the phenomenon more convincing. The Method in which Conclusions will be derived The most important issue in research is that the process of arriving at conclusions is not a sequential one. No conclusion can be drawn until there is a clear data display. The process of arriving at conclusions will be as shown in Figure 6 below (Miles. Huberman, 1994). Consequently, after having administered the questionnaires and collated the responses, the findings will be compared with review of literature to analyze the banking system in China and UK. Figure 6 Chapter 3 – Literature Review Literature on Banking in China. Banking China General. Modern banking in China commenced with the establishment of the first Chinese bank based on western pattern of banking in 1897. (Cheng, 2003). The Chinese banking system however has undergone turbulence over the years due to historical upheavals in the country such as the invasion by the Japanese in 1937, the Second World War, the Communist Revolution, communist party rule and there after opening of the economy in the 1980’s and 1990’s. The era of 1927 to 1937 is regarded as the golden era of Chinese banking under the government of Sun Yat Sen. There after there have been many changes until the emergence of the present banking system. (Cheng, 2003). Chow (1994) has indicated that the principal player in the Chinese banking industry is the People’s Bank which has played an important role in the Chinese economy even after liberalization though its role has been relatively passive. The Chinese banking reforms were undertaken after the landmark decision during the Third Plenary Session of the Fourteenth Congress of the Chinese Communist Party on 11 and 14 November. (Chow). These reforms reversed the processes undertaken almost five decades earlier in December 1948 when the People’s Bank was established after consolidating a number of local banks such as the Huabei Bank, Beihai Bank and Xibei Farmer Bank. The China Banking Regulatory Commission was established to supervise the financial industry in March 2003, thus diluting the hold of the People’s Bank as a central bank established in 1983. The People’s Bank is supported by four principal state controlled banks of which Bank of China (BOC) is one of the largest entities. The OECD Economic Survey on China 2005 indicates that the government policy has provided adequate space for the growth of market forces to influence the economy and is now determining the prices, trade, and investment by foreign companies as well as the overall financial system. (OECD, 2005). These reforms have impacted the level of savings in the Chinese economy while at the same time providing for greater foreign investment. The report has called for greater reforms in the banking sector to ensure that the process of growth is carried forward. (OECD, 2005). Thus broadly it would be seen that Chinese banking industry is on a threshold of transformation. Literature on Bank of China Bank of China – General The Bank of China is one of China’s oldest banks which has had a significant role to play in China’s financial history. The Bank was established in 1912 under the Sun Yat Sen regime. It had an important part to play in the turbulent period of China’s history to include a constant flux in the economy, political change and revolutionary periods including wars. (About Bank of China,. 2006). In the beginning of the Communist era, in1949, it was nominated as the primary bank specializing in foreign exchange. Thus it was at the fore front of development of foreign trade, providing currency and credit facilities to a large variety of individuals and firms. (About Bank of China, 2006). In 1994, the Bank was converted to a state owned commercial bank thus in 2003, when the Chinese banking sector assumed velocity it greatly benefited Bank of China. In 2003 another initiative to convert it into a joint holding bank was undertaken, a process which was finalized in 2004 when it was incorporated as a joint stock commercial bank, thereby providing it the ability and the regulatory authority to provide a wide spectrum of services across a vast geographic area to include 27 countries and regions. It is stated to have 10000 domestic and 600 overseas operations. (About Bank of China, 2006).