Study Of The Gradualism Financial Liberalization In China And Its Relation With The Risk Of State Owned Banks

The subject of this paper is "the gradualism financial liberalization in China and its relation with the risk of State Owned Banks". The writer picks this subject because it's connected with many attractive academic fields and there still many related question not resolved yet. The main purpose of this paper is to resolve the three following questions: 1. As the greatest developing country and the most typical gradualism transition country, China's financial depressing policy represented by the State Owned Bank System has drawn the attention of academic research, and the great financial risks accumulated in the SOBs in the progress also has been studied carefully, but there are few research about the relation of SOBs risk and financial depressing; 2. Since China has been late in interest rate liberalization, which is the core of financial liberalization, and people has taken for granted that there would be no financial reform without interest rate liberalization, so there are few research about the general side of China's financial liberalization reform, especially the discussion connected with the transition economy and the resolve of SOBs risks; 3.Though there are numerous researches about the SOBs risks, but few of them observed the evolution and control of SOBs risks from the point of financial liberalization reform. This paper adopts the method of New Institution Economics, studies the relation of financial depressing policy and SOBs risks. From the point of financial liberalization reform we could study the evolution and control of SOBs risks in a wide scope. The gradualism financial reform has accelerated since China's entry of WTO, the financial globalization progress also plays more and more important role in this reform. It's necessary to study the background of China's financial reform to push the reform smoothly. Considering the importance of SOBs, the control and resolve of SOBs risks is the key factor of the gradualism reform, the study of this paper could give suggestions to resolve this problem.This paper is arranged as follows: The first part gives the theoretical and practical meaning of this paper, points out the method of research, and summarizes the main innovation. Chapter 2 gives a brief review of the related theories of financialliberalization, institution economics and transition economics. This chapter discusses the theoretical thoughts and policy suggestion of financial liberalization theory, especially those of McKinnon and Shaw at first, then the writer discusses the New Institution Economics theory and pays more attention to its research pattern and thoughts about the institution evolution. At last, this chapter discusses the transition economics and emphasizes its meaning to China's gradualism economic transition.Chapter 3 analyses financial depressing and the accumulating of the risks of SOBs in the progress of transition. This chapter analyses the benefit and cost of financial depressing, and the relation between the financial depressing and financial risks. The gradualism reform of China could not made phasic succeed without financial support based on the financial depressing system, so this chapter gives a detailed examination of the reason between financial depressing and the formation and accumulation of the risks of SOBs.Chapter 4 examines the relation between China's financial liberalization practice and the control of SOBs risks. This chapter compares the practices and effects of the financial liberalization of different developing countries at first, and then examines China's gradualism financial liberalization and SOBs risks from the point of banking system, financial market and releasing of credit control.Chapter 5 discusses the relation between the financial liberalization and the evolution of SOBs risks. This chapter examines the fragility of SOBs, then the evolution of SOBs risks in the financial liberalization progress. After combing the history of financial crisis in Southeast Asian and Latin American, the writer gives a detailed examination of the relation between SOBs risks and financial crisis.Chapter 6 examines the relation between governmental behavior and SOBs risks. The writer discusses the governmental behavior during the financial liberalization progress at first, and then discusses the main topic of this chapter from the point of central and local government. Review of the governmental supervision measure also takes certain position in this part Chapter 7 discusses several questions connected with financial liberalization from the point of SOBs reform and risk control. This chapter analyses the necessity to resolve the SOBs risk under a forward-oriented competitive frame, and then discusses the necessary supporting measures for the SOBs reform. At last, the writer discusses the control of financial liberalization progress primarily. Chapter 8 gives the conclusion of the paper.The innovations of this paper are as follows: to study China's financial liberalizationfrom the transition angle; to study the evolution and control of SOBs risks and the fragility of SOBs under the gradualism financial reform background; to oppugn the "impartibility of state credit" and the opinion to keep away from the adjusting of SOBs' capital structure theoretically. Based on the above analysis, the conclusions of the paper are as follows: The SOBs arrangement is the most typical factor of China's financial depressing, and the state ownership is the main reason of the accumulation of SOBs risks.The main purpose of China's gradualism financial liberalization is to control and resolve the SOBs risks and China still under serious financial depressing though the reform has made certain progress.The SOBs risks are closely connected with the financial liberalization, government plays important role in the financial reform and the evolution and control of SOBs risks. The viewpoint of "impartibility of state credit " does not have firm foundation, and the related opinion to keep away from the adjusting of SOBs' capital structure isn't tenable.The writer needs to deepen the research in the following aspects: To study the development of China's financial liberalization by normative methods; to study the overall influence of financial reform on SOBs risks through comparative study; to study how to control the SOBs risks during the financial reform by general and exact ways.