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Structural Change of the Banking System in 1978-92

In: Banking Reforms and Monetary Policy in the People’s Republic of China

Author

Listed:
  • Yong Guo

Abstract

Since the Chinese economy was a centrally planned system, economic reform followed the path of decentralization. According to Yusuf (1994): decentralization has occurred at three levels. Administrative decentralization has allowed provincial and local authorities substantial latitude in routine decision-making and the conduct of day-to-day government business . . . Second, fiscal decentralization, introduced by degrees after 1981 partly in response to demands from lower levels of government, enables provinces to retain and allocate more of the tax revenues collected instead of passing them on to the center. . . Third, industrial policy and supporting investment in infrastructure has been decentralized.

Suggested Citation

  • Yong Guo, 2002. "Structural Change of the Banking System in 1978-92," Palgrave Macmillan Books, in: Banking Reforms and Monetary Policy in the People’s Republic of China, chapter 2, pages 16-44, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-4039-1454-5_3
    DOI: 10.1057/9781403914545_3
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