Capital Account Liberalization And China's Banking System To Study

In 1990s , developing countries attracted capital inflow to promote the domestic economy through liberalization of capital account. So in these ten years, the process of capital account liberalization in these countries began to accelerate. We conclude these countries' experience to our liberalization of capital account for reference that firstly the capital account liberalization cannot be so quick that the domestic condition fits it, secondly, enforce the regulatory of domestic commercial banks during the liberalization, thirdly, the oversea finance control of banks should be removed cautiously, and lastly, the liberalization of capital account should be arranged and in the principle of "long term firstly and short term secondly".After the convertibility of RMB in current account in 1996, the capital account liberalizes gradually in the meantime the commercial banks begin to reform.This thesis is about the bad effect of capital liberalization in our commercial banks. The main content is that a great deal of funds flow in our country due to the capital account liberalization and appreciation anticipation of RMB, and these money will effect the stability of banks through expanding of bank's balance sheet, the instability of macroeconomic variables, and RMB speculation. Also due to these money ,the exist of moral hazards in banks makes bank over-invest and over-borrow. It is dangerous that the risk of those investments deposits in the bank. Including the above, we also need to consider the competence between foreign banks and domestic banks.The end of the thesis brings some suggestions up. Firstly, China must follow the gradualist strategy. Secondly, set up the pre-warning system, market the interest rate, use open market operation and foreign reserve, charge the tax of the capital transaction and reinforce the money coordination of region. Thirdly, enhance the regularity of banks, use the position management, set up effective in-control system and strengthen the disclosure of bank's accounting information. Fourthly, rule the...