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Who Pays China's Bank Restructuring Bill?

Author

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  • Guonan Ma

    (Senior Economist, Representative Office for Asia and the Pacific Bank for International Settlements, 78/F Two International Financial Centre, 8 Finance Street, Central Hong Kong, SAR, China)

Abstract

This paper addresses questions related to the cost of China's bank restructuring and financing. We first propose a framework for recognizing losses. Then, we examine the recent major moves by the Chinese government to repair the country's bank balance sheets. Finally, we explore the implications of the Chinese ways of funding the bank restructuring. We find that the Chinese government has been decisive in confronting the costly task of bank restructuring. Looking through the elaborate funding arrangements adopted so far, the Chinese taxpayers have paid most of the bill. (c) 2007 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

Suggested Citation

  • Guonan Ma, 2007. "Who Pays China's Bank Restructuring Bill?," Asian Economic Papers, MIT Press, vol. 6(1), pages 46-71, Winter.
    • Handle: RePEc:tpr:asiaec:v:6:y:2007:i:1:p:46-71
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    References listed on IDEAS

    as
    1. Jacob Gyntelberg & Guonan Ma & Eli M Remolona, 2005. "Corporate bond markets in Asia," BIS Quarterly Review, Bank for International Settlements, December.
    2. Mitchel Y. Abolafia (ed.), 2005. "Markets," Books, Edward Elgar Publishing, number 2788.
    3. William R. White, 2004. "Are changes in financial structure extending safety nets?," BIS Working Papers 145, Bank for International Settlements.
    4. Robert N McCauley, 2003. "Unifying government bond markets in East Asia," BIS Quarterly Review, Bank for International Settlements, December.
    5. Guonan Ma & Ben S.C. Fung, 2002. "China's asset management corporations," BIS Working Papers 115, Bank for International Settlements.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ouyang, Alice Y. & Rajan, Ramkishen S. & Willett, Thomas D., 2010. "China as a reserve sink: The evidence from offset and sterilization coefficients," Journal of International Money and Finance, Elsevier, vol. 29(5), pages 951-972, September.
    2. Simon Wong, Chak Keung & Gladys Liu, Fung Ching, 2011. "A study of pre-trip use of travel guidebooks by leisure travelers," Tourism Management, Elsevier, vol. 32(3), pages 616-628.
    3. Guonan Ma & Xiandong Yan & Xi Liu, 2012. "China'S Reserve Requirements: Practices, Effects, And Implications," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 1(02), pages 1-34.
    4. repec:zbw:bofitp:2011_030 is not listed on IDEAS
    5. Shiyi Chen & Wolfgang K. Härdle & Li Wang, 2020. "Estimation and determinants of Chinese banks’ total factor efficiency: a new vision based on unbalanced development of Chinese banks and their overall risk," Computational Statistics, Springer, vol. 35(2), pages 427-468, June.
    6. Diego Anzoategui & Miss Mali Chivakul & Wojciech Maliszewski, 2015. "Financial Distortions in China: A General Equilibrium Approach," IMF Working Papers 2015/274, International Monetary Fund.
    7. James Laurenceson & Zhao Yong, "undated". "Efficiency Amongst China’s Banks:A DEA Analysis Five Years after WTO Entry," EAERG Discussion Paper Series 1605, School of Economics, University of Queensland, Australia.
    8. James Laurenceson & Fengming Qin, "undated". "Has minority foreign investment in China�s banks improved their cost efficiency?," EAERG Discussion Paper Series 1305, School of Economics, University of Queensland, Australia.
    9. repec:zbw:bofitp:2016_001 is not listed on IDEAS
    10. Guonan Ma & Yan Xiandong & Liu Xi, 2013. "China’s evolving reserve requirements," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 11(2), pages 117-137, May.
    11. Leong Liew & Liping He, 2012. "Operating in an inharmonious world: China Investment Corporation," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(2), pages 253-267.
    12. Ma, Guonan & Yao, Wang, 2016. "Can the Chinese bond market facilitate a globalizing renminbi?," BOFIT Discussion Papers 1/2016, Bank of Finland Institute for Emerging Economies (BOFIT).
    13. Kudrna, Zdenek, 2007. "Banking reform in China: Driven by international standards and Chinese specifics," MPRA Paper 7320, University Library of Munich, Germany.
    14. Guonan Ma & Wang Yao, "undated". "Can The Chinese Bond Market Facilitate A Globalizing Renminbi?," GRU Working Paper Series GRU_2016_011, City University of Hong Kong, Department of Economics and Finance, Global Research Unit.
    15. repec:hum:wpaper:sfb649dp2014-068 is not listed on IDEAS
    16. Bruno Rocha, 2010. "At Different Speeds: Policy Complementarities and the Recovery from the Asian Crisis," Working Papers id:3294, eSocialSciences.

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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance

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