UID:
edocfu_9958068233802883
Format:
1 online resource (60 p.)
ISBN:
1-4843-4036-1
,
1-4843-5206-8
,
1-4843-5389-7
Series Statement:
IMF working paper ; 13/75
Content:
This paper investigates macroprudential policies and their role in containing systemic risk in China. It shows that China faces systemic risk in both the time (procyclicality) and cross-sectional (contagion) dimensions. The former is reflected as credit and asset price risks, while the latter is reflected as the links between the banking sector and informal financing and local government financing platforms. Empirical analysis based on 171 banks shows that some macroprudential policy tools (e.g., the reserve requirement ratio and house-related policies) are useful, but they cannot guarantee protection against systemic risk in the current economic and financial environment. Nevertheless, better-targeted macroprudential policies have greater potential to contain systemic risk pertaining to the different sizes of the banks and their location in regions with different levels of economic development. Complementing macroprudential policies with further reforms, including further commercialization of large banks, would help improve the effectiveness of those policies in containing systemic risk in China.
Note:
Description based upon print version of record.
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Contents; I. Introduction; II. Literature Review; A. Identifying Systemic Risk; B. Selecting Macroprudntial Policy Tools; Tables; 1. A Systemic Risk Dashboard; 2. Summary of Macroprudential Tools; 3. Alternative Sets of Tools to Foster Financial Stability; C. Determining the Institutional Arrangement; 4. Summary of Institutional Arrangements for Macroprudential Policies; III. Potential Systemic Risk in China; A. China-Specific Circumstances; Figures; 1. China has the Highest Investment-to-GDP Ratio in G-20 Countries; 2. Differences in GDP per Capita at Province Level
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3. Trends of Current Account, Hot Money and M2 in China, 2000-114. Exchange Rate of RMB, M2 and Foreign Reserves, 2000-11; 5. Indicators of Capital Account Openness in China, 2005-10; 5. Size of Selected Countries' Financial Systems, end-2011; B. Systemic Risk in China; 6. Fiscal Gaps at Province Level in China; 7. Credit Comparison: Five Years Before Housing Price Peaks; 8. Mortgages and House Price in China, 2008-10; 9. Comparing China's Housing Price Increases with Those in Other Housing Booms; 10. Informal Financing in China
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11. Loans by Local Government Financing Platforms Outweigh Local Government RevenueIV. Stylized Facts on Macroprudential Policies and Their Effectiveness; A. China's Macroprudential Policy Toolkit; 6. China's Macroprudential Instruments; 12. RRRs of China's Large Banks and Small/Medium Banks, 2008-12; B. China's Macroprudential Institutional Arrangement; 7. LTV Ratio in Chinese Real Estate Sector; C. Stylized Facts on the Effectiveness of China's Macroprudential Policies; 13. Loan Growth Rate Decreases and Increase in Lending Rate and RRR ,2010-12
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14. China: Interest rate, RRR, and Quarterly Growth in Domestic Credit, 2000-1115. Mortgage and House Price in China, 2010-11; 16. House Prices and Policy Impact; 8. Instruments for Curbing China's House Price; 17. Understanding the Rationale of Macroprudential Policies in China; V. Effectiveness of Macroprudential Policies-An Empirical Analysis; A. Data and Methodology; 18. Shares of Loans to East China in Total Loans; 9. List of Variables Used in Regression Analysis; B. Estimation Strategy; C. Empirical Results; 10. Summary of Fixed-Effects Panel Estimation Results
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19. Different House Price Impact of the RRR on Different Types of BanksVI. Policy Implications; References; Annexes; I. List of Sample Banks; 11. Results of Individual Variables Based on Full Sample; II. Detailed Panel Estimation Results; 12. Results of Individual Variables Based on the Sample of Large Bank; 13. Results of Individual Variables Based on the Sample of Small/Medium Banks; 14. Results of Individual Variables Based on the Sample of Banks in the East Region; 15. Results of Individual Variables Based on the Sample of Banks in the Middle Region
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16. Results of Individual Variables Based on the Sample of Banks in the West Region
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English
Additional Edition:
ISBN 1-4843-5588-1
Language:
English
