Maintaining Financial Stability in the People's Republic of China During Financial Liberalization

Nicholas Borst, Nicholas Lardy
2015 Social Science Research Network  
Th e banking system of the People's Republic of China (PRC) is now the largest in the world, and its capital markets are rapidly approaching the size of those in the advanced economies. Th is paper traces the evolution of the PRC's fi nancial system away from a traditional bank-dominated and state-directed fi nancial system toward a more complex, market-based system and analyzes the optimal sequence of fi nancial reforms needed to manage the new risks accompanying this evolution. JEL codes: G180, G210
doi:10.2139/ssrn.2588543 fatcat:v4w336ff5bevniifxeuhqict3y