With China becoming the second most powerful economy in the world–and a close second at that–you might wonder how the average Chinese person dealing with personal finance differs from an American citizen. Do they get to choose where they bank? Do they apply for if they get in a tough financial spot? Do they have relationships with their local financial institutions and their employees like Americans used to do? Or is it a completely different system than the western financial systems in North America and Europe?

The one thing that plays a huge factor in answering any or all of these questions is that China’s financial sector is closed off and heavily regulated. You can’t forget that China still aspires to fulfill its communist ideals. Even though it has opened up its borders for investments from the west, communism still is one of the most fundamental and influential factors within China.

China’s banking system is heavily regulated, and its biggest bank is the People’s Bank of China. This is the has been the bank for average citizens since it opened in 1948. In 1994, banking reform was initiated to strengthen the role of the People’s Bank of China, yet it also allowed private banks to be established. Since the banking reforms were instituted, a number of foreign banks have been given access to China and have opened up branches. However, most of these branches are solely representative, with only a few actually permitted to carry out the typical branch functions.

While there are significant differences between China’s financial system and western ones, there are telltale signs that China is continuing to become more westernized in its financial dealings. China’s average household debt level rose from a marginal 4 percent in 2000 to 12 percent in 2008, suggesting a more relaxed attitude toward spending and taking on debt.

Imagine, for a minute, that you have just realized that you are going to run out of money before your next paycheck arrives. Borrowing money from a friend or family member is embarrassing and sometimes not possible. You might be able to use one of your credit cards, but perhaps they are all maxed out, or maybe the interest rates are prohibitively high. Your bank may give you a loan, but that could be time-consuming, and they probably recently became much stricter about lending money anyway – who knows if you will qualify? Obviously, your employer is not going to pay you early, as nice as that would be! Maybe you can have a quick tag sale or sell something on Ebay or Craigslist, but that’s a long shot. What other options do you have?

There are many businesses today that offer , which can be useful alternatives to traditional loans or credit card cash advances. These loans are given after you provide proof of income to the lender, who will then typically loan you an amount of cash that you’ll be able to pay back once your next paycheck arrives. This kind of loan can even be completed via the internet, with the money being transferred to your checking account within a few hours. Unlike normal loans, these loans typically do not require credit checks, co-signers, or other restrictive measures. They’re a good option for getting yourself out of a financial tight spot. This can be especially helpful when getting the money will mean you’re able to pay a bill that, if left unpaid, would negatively affect your credit rating. The hidden cost of missing such a payment can be enormous: higher interest rates, less available credit, and even repossession of an asset. Payday loans can be another tool in your financial toolbox.