Comments by Zhao Chen, on Interest Liberalization and the Estimation of Implicit Interest Rates in China's Banking Sector

Abstract

November 01 2017 Comments by Zhao Chen, on Interest Liberalization and the Estimation of Implicit Interest Rates in China's Banking Sector Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2017 by the Asian Economic Panel and the Massachusetts Institute of Technology2017Massachusetts Institute of Technology Asian Economic Papers (2017) 16 (3): 309–310. https://doi.org/10.1162/asep_a_00578 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Comments by Zhao Chen, on Interest Liberalization and the Estimation of Implicit Interest Rates in China's Banking Sector. Asian Economic Papers 2017; 16 (3): 309–310. doi: https://doi.org/10.1162/asep_a_00578 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Zhao Chen: This paper provides empirical evidence about implicit interest rates in China's banking sector, a topic that has not been well addressed by existing literature. To my understanding, the contribution of this paper is not only that it provides evidence from a developing country on this topic, but also that it is very important information for policymakers concerning further financial deregulation in China. There is a large growing literature on financial sector friction and misallocation in China. It is without question that China's financial sector needs to deregulate further and interest rate liberalization will of course be one of the main tasks of financial deregulation. Nonetheless, the Chinese government needs to know more about the micro aspects of the financial sector to have a smoother transition toward a deregulated financial system. The authors find that the implicit interest rate accounts for 70–78 percent of the explicit interest rate in... You do not currently have access to this content.