UID:
edocfu_9958078124302883
Format:
1 online resource (30 p.)
Edition:
1st ed.
ISBN:
1-4623-2751-6
,
1-4527-0264-0
,
1-4518-7318-2
,
9786612843846
,
1-282-84384-2
Series Statement:
IMF working paper ; WP/09/171
Content:
What might interest rate liberalization do to intermediation and the cost of capital in China? China's most binding interest rate control is a ceiling on the deposit rate, although lending rates are also regulated. Through case studies and model-based simulations, we find that liberalization will likely result in higher interest rates, discourage marginal investment, improve the effectiveness of intermediation and monetary transmission, and enhance the financial access of underserved sectors. This can occur without any major disruption. International experience suggests, however, that achieving these benefits without unnecessary instability, requires vigilant supervision, governance, and monetary policy, and a flexible policy toolkit.
Note:
"August 2009."
,
Contents; I. Introduction; II. A Model of China's Banking Sector; A. Baseline Oligopoly Model; B. Calibration; III. How May Interest Rate Liberalization Change Chinese Banking?; A. The Impact of Liberalization; B. Robustness; IV. What Has Been the Experience with Liberalization Elsewhere?; Box: Key Dates in Interest Rate liberalization in China; A. Nordic Countries; B. Savings and Loan in the U.S.; C. Turkey; D. Korea; E. Lessons; V. Conclusion; Technical Appendix; References
,
English
Additional Edition:
ISBN 1-4519-1746-5
Language:
English
