Financial globalization and the restructuring of the banking industry

Author: Qin Fengming
Publisher:
Publish Date: 2004-07-01
Features: At the end of the financial turmoil in the late 20th century, economic growth has once again emerged. However, no crisis country has effectively addressed its domestic banking issues, so it may be too early to declare the end of the financial crisis era. How should we view the potential and actual benefits and risks of financial globalization? How should we evaluate the impact of financial globalization and its institutional foundation—financial liberalization—on the financial industry and economic development? What is the relationship between modern financial crises, especially banking crises, and financial liberalization and financial globalization? A more profound and practically significant question is: To what extent do financial liberalization and financial globalization exacerbate the vulnerability of the banking system? Do banking issues in different economic systems share commonalities and characteristics? Do the banking restructuring efforts in crisis countries offer inspiration and lessons for China's banking reforms? What are the policy implications? Due to differences in perspectives and stances in analyzing these issues, there has been extensive debate and controversy, which has sparked the author's interest and sense of responsibility, leading to the motivation for choosing this topic. The structure of this book is as follows: The introduction raises the questions and main arguments. The main body is divided into six chapters. Chapter 1 discusses the main characteristics of financial globalization. Chapter 2 provides a review of research on financial globalization, its institutional factors, and modern financial crisis theories—analyzing the benefits and costs of financial globalization, as well as its contradictions and conflicts through the disputes over the consequences of financial liberalization. Chapter 3 delves into the impact of financial globalization on the banking industry. Chapter 4 focuses on analyzing the evolution of international banking rules in the context of financial liberalization. Chapter 5 examines the challenges faced by China's banking industry under the WTO framework and the severe flaws in the banking structure under the current financial model, along with ideas for restructuring. The sixth and seventh chapters analyze the challenges faced by China's banking industry under the WTO framework and the severe flaws in the banking structure under the current financial model, along with ideas for restructuring. Finally, the seventh chapter emphasizes the need to improve the overall financial environment for banking restructuring, including prudent choices of exchange rate systems and the timing of capital and financial account openness.