1.

Record Nr.

UNINA9910828971603321

Autore

Feyzioglu Tarhan

Titolo

Interest Rate Liberalization in China / / Tarhan Feyzioglu, Nathan Porter, Elöd Takáts

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2009

ISBN

1-4623-2751-6

1-4527-0264-0

1-4518-7318-2

9786612843846

1-282-84384-2

Edizione

[1st ed.]

Descrizione fisica

1 online resource (30 p.)

Collana

IMF Working Papers

Altri autori (Persone)

PorterNathan

TakátsElöd

Disciplina

332.8;332.82

Soggetti

Interest rates - Government policy - China

Monetary policy - China

Banking

Banks and Banking

Banks and banking

Banks

Central Banks and Their Policies

Commercial banks

Deposit rates

Depository Institutions

Event Studies

Finance

Financial institutions

Financial services

General Financial Markets: Government Policy and Regulation

Industries: Financial Services

Information and Market Efficiency

Interbank rates

Interest rate policy

Interest rates

Interest Rates: Determination, Term Structure, and Effects

Loans

Market Structure and Pricing: Oligopoly and Other Forms of Market Imperfection

Micro Finance Institutions



Monetary economics

Monetary policy

Money and Monetary Policy

Mortgages

China, People's Republic of

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"August 2009."

Nota di contenuto

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

Sommario/riassunto

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.