Interest Rate Liberalization in China
Author/Editor: Nathaniel John Porter, Elöd Takáts, Tarhan Feyzioglu
Release Date: © August, 2009
ISBN: 978-1-45187-318-4
Stock #: WPIEA2009171
English
Stock Status: Available
Languages and formats available
| English | French | Spanish | Arabic | Russian | Chinese | Portuguese | |
| Paperback | Yes |
Description
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.
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Keywords
Financial Liberalization, Financial Deregulation, Interest Rate Liberalization, Banking, Banking Sector, Banks, Credit Controls, Credit Demand, Economic Models, Financial Intermediation, Interest Rates
Taxonomy
Banks and banking,
Capital markets,
Economic policy,
Financial institutions and markets,
Loans,
Monetary policy
More publications in this series: Working Papers
More publications by: Nathaniel John Porter ; Elöd Takáts ; Tarhan Feyzioglu

