This paper examines the impact of the policy on eliminating the ratio of foreign shareholding in banks in a mixed oligopoly model.Its analytic results show that state-owned banks should encourage privatisation along w...This paper examines the impact of the policy on eliminating the ratio of foreign shareholding in banks in a mixed oligopoly model.Its analytic results show that state-owned banks should encourage privatisation along with an increasing proportion of the domestic share in multinational banks.Furthermore,we argue that the increase in domestic stockholding of multinational banks raises domestic private firms’profits but decreases their social welfare in the deposit market.The results of numerical simulation show that when the quantity of private banks is fixed,foreign banks tend to enlarge their stake and strengthen their controlling power.展开更多
This paper analyzes the logic of the reform of state-owned commercial banks during 1997-2006 from a political economy perspective, mainly by discussing three fields of the reform: shareholding system reform, marketiza...This paper analyzes the logic of the reform of state-owned commercial banks during 1997-2006 from a political economy perspective, mainly by discussing three fields of the reform: shareholding system reform, marketization, and financial restructuring. It also points out the existing problems in each field. The conclusion is that although the reform is heading in the right direction and has already made great progress, it has largely been conducted at the technical level and the Government has avoided dealing with the core issue of the reform. More importantly, the consequences of the Government's policy—pursuing short-term objectives, like improving the short-term financial status of banks—puts the entire system in danger by accumulating long-term risks. This paper also provides some policy proposals and points out potential directions for further studies.展开更多
文摘This paper examines the impact of the policy on eliminating the ratio of foreign shareholding in banks in a mixed oligopoly model.Its analytic results show that state-owned banks should encourage privatisation along with an increasing proportion of the domestic share in multinational banks.Furthermore,we argue that the increase in domestic stockholding of multinational banks raises domestic private firms’profits but decreases their social welfare in the deposit market.The results of numerical simulation show that when the quantity of private banks is fixed,foreign banks tend to enlarge their stake and strengthen their controlling power.
文摘This paper analyzes the logic of the reform of state-owned commercial banks during 1997-2006 from a political economy perspective, mainly by discussing three fields of the reform: shareholding system reform, marketization, and financial restructuring. It also points out the existing problems in each field. The conclusion is that although the reform is heading in the right direction and has already made great progress, it has largely been conducted at the technical level and the Government has avoided dealing with the core issue of the reform. More importantly, the consequences of the Government's policy—pursuing short-term objectives, like improving the short-term financial status of banks—puts the entire system in danger by accumulating long-term risks. This paper also provides some policy proposals and points out potential directions for further studies.
