China's Banking Reform: Problems and Potential Solutions
Despite recent reforms to China's financial system, there remain numerous shortcomings. The asset quality of state-owned banks continues to be unsatisfactory, with taxpayers and depositors subsidising both SOBs and SOEs. Banks' loan margins and capital adequacy remain too low. The capital market is also inefficient. The fundamental problem is the lack of an appropriate property rights infrastructure, without an adequate informational, incentive and legal framework.
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Volume (Year): 4 (2006)
Issue (Month): 3 ()
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