## Abstract This paper analyzes the important process about financial reform in the area of bank illiquidity in lowβincome emerging markets. This process is taking place within the context of a debate as to whether or not governments should try to rehabilitate existing stateβowned banks or allow a
State banks and economic development in China
β Scribed by James Laurenceson; J. C. H. Chai
- Publisher
- John Wiley and Sons
- Year
- 2001
- Tongue
- English
- Weight
- 100 KB
- Volume
- 13
- Category
- Article
- ISSN
- 0954-1748
- DOI
- 10.1002/jid.727
No coin nor oath required. For personal study only.
β¦ Synopsis
Abstract
Stateβowned banks remain dominant in China's financial sector despite over two decades of gradual financial liberalization. Their performance is typically evaluated using commercial banking criteria. The standard view is that because state banks have experienced declining profitability and capital adequacy, they have been a drain on past economic development and endanger future growth prospects. However, we argue that state banks have strong development bank characteristics and hence warrant different performance criteria. The analysis in this paper suggests that while thier commercial performance may have been poor, the overall impact of state banks on China's economic development appears to have been both positive and sustainable. Copyright Β© 2001 John Wiley & Sons, Ltd.
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