Please boost your Plan to download papers
The Effect of interest rate Liberalization on the risk of commercial banks in China - Dissertation Example
Author : nestordenesik
Finance & Accounting
Pages 60 (15060 words)
After a series of reforms that literally capitalized China and made it a play ground for global MNCs and promoted the country in global scenario as a viral force at least in terms of international trade and registering Gross Domestic Product Growth at two digits annually…
The paper has discussed illustrates a mixed picture after interest rate liberalization and its associated risk on the commercial banks in China. Historically China is a strong believer in the planned economy where strict government intervention under a single party rule always has the last word regarding the policies to be prioritized and implemented. Though after the iron rule of Mao-era China has learned under Deng Xiaoping that FDI and capitalist exploitation is not the same thing but the people as well as the government are still skeptical about their nature of the operation. Over the past couple of decades, China has realized huge GDP growth through export-oriented international trade. This on one hand, strengthened the export based industries on the other weekend the indigenous industries especially those indulged in import substitution. Again amidst this prosperity, China has slipped down considering the GINI coefficient and that illustrates a rising inequality i.e. an increasing gap between the rich and poor people. Eminent academicians hold the view that with China’s present model rich are becoming richer and poor are becoming poorer. The development is mainly urban centric and rural China is subject to stagnation and a much higher unemployment than the urban areas. ...