Many great developing nations were destined for economic greatness, but a weak financial system was their downfall. India and China both suffer from financial shortfalls. India, which suffered a financial crisis in 1919 that required the intervention of the International Monetary Fund, still experiences runaway government budget deficits at both the federal and state levels (Engardio 203). Burdened by mountains of bad debt, markets remain underdeveloped for China's banking system. Only currency and capital controls, many experts believe, immunized China from the contagion of the 1997 Asian financial crisis (Engardio 203). China's growth has amazed the world, but the waste of money has not been as publicized. Profits from export trade and the captive savings of its population, China can invest recklessly. More than $3 trillion is placed in Chinese banks, earning paltry interest, because the country's capital controls and undeveloped capital markets prevent savers from investing it elsewhere (Engardio 205). China's four largest banks and thousands of local lenders have misallocated the country's liquidity. Large bank loans have built more than 200 steel plants that China owns. However, 85 factories produce 90% of China's steel. China's railways, on the other hand, are hungry for money. The managers of these railways do not have the same political connections that the steel mills have. This led to the creation of the Big Four. The idea is for foreign stakeholders to lend their expertise and, among other reforms, help fix the lending books of China's big banks (Engardio 206). The Big Four and the government will not allow foreign partners to have any real control over management. Loan officers do not generate regular reports for which loans are paid and which are not. Bad loans now represent 11% of the bank's loan portfolio (Engardio 208). The capital adequacy ratio is at 2%, lower than the 4% set by Chinese regulators. The SDB's main task is to effectively gain control over the bank's branches in major cities. Cities include Shanghai, Beijing and Chongqing. For this reason, branch loan officers must report to headquarters and a central credit committee to make clear lending decisions. One question facing the SDB is how it will raise the capital it needs. This capital will help the company meet minimum capital requirements and upgrade its IT systems.