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China's national banking system: commercialisation and financial stability


  • Ron McIver


This paper analyses China's success in establishing a commercially–oriented bank system, the system's ongoing stability, and factors supporting stability. These issues are addressed for the 1997-2003 period through consideration of: the liquidity requirements of commercial banks; and a comprehensive set of macro-economic and micro-prudential indicators suggested by the International Monetary Fund (2000) for the analysis and detection of financial system fragility. The paper concludes that China's major banks lacked sufficient balance sheet liquidity to operate as commercial banks. Additionally, while China's banking system was highly sensitive to the macro-economic environment, existence of a financial crisis is not supported.

Suggested Citation

  • Ron McIver, 2009. "China's national banking system: commercialisation and financial stability," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 2(4), pages 391-414.
  • Handle: RePEc:ids:ijepee:v:2:y:2009:i:4:p:391-414

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    References listed on IDEAS

    1. Singleton, W. R. & Globerman, Steven, 2002. "The changing nature of financial disclosure in Japan," The International Journal of Accounting, Elsevier, vol. 37(1), pages 95-111.
    2. Ashbaugh, Hollis, 2001. "Non-US Firms' Accounting Standard Choices," Journal of Accounting and Public Policy, Elsevier, vol. 20(2), pages 129-153.
    3. Mokhtari, Manouchehr & Rassekh, Farhad, 1989. "The Tendency towards Factor Price Equalization among OECD Countries," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 636-642, November.
    4. Cooke, Terence E. & Wallace, R. S. Olusegun, 1990. "Financial disclosure regulation and its environment: A review and further analysis," Journal of Accounting and Public Policy, Elsevier, vol. 9(2), pages 79-110.
    5. Asheq Rahman & Hector Perera & Siva Ganesh, 2002. "Accounting Practice Harmony, Accounting Regulation and Firm Characteristics," Abacus, Accounting Foundation, University of Sydney, vol. 38(1), pages 46-77.
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