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Exit Mechanisms in Banking

In: Banking in China

Author

Listed:
  • Violaine Cousin

Abstract

As mentioned by Wu Xiaoling in an interview (Ye W. and Hu J., 2006), the banking industry in China needs a functioning and efficient exit mechanism: “In a market economy, only if there is a pressure to exit a market, there is a good incentive for operations; [the pressure] improves the healthiness of operations of financial institutions, optimizes the allocation of financial resources, and protects the system from financial instability.”

Suggested Citation

  • Violaine Cousin, 2007. "Exit Mechanisms in Banking," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Banking in China, chapter 3, pages 39-45, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-0-230-59584-2_3
    DOI: 10.1057/9780230595842_3
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