China's Banking Sector as the Foundation of Financial Reform

Sara Hsu

Asia and the Pacific Policy Studies, 2016, vol. 3, issue 2, 244-248

Abstract: China is in the process of undertaking financial reform in many directions—introducing small private banks in the banking sector, promoting bond and equity finance, increasing exchange rate and capital account liberalization, enhancing financial regulation, and promoting the efficiency and scope of finance. While some foreign analysts have focused on the importance of liberalizing the exchange rate and capital account, we believe these aspects of reform take second priority to traditional banking reform, even though the ongoing process in practice is to slowly implement reforms in all areas at once.

Date: 2016
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