Risks and Control in Interest Rate Liberalization Reform

Author: Shao Fujiun
Publisher:
Publish Date: 2005-10-01
Features: This book is divided into eight chapters. Structurally, it is mainly divided into four parts. The first part is the introduction to theory and literature, the second part covers the practices and experiences of interest rate liberalization reforms both domestically and internationally, the third part analyzes the risks of interest rate liberalization reforms, and the fourth part studies the risk manifestations and control issues in China's interest rate liberalization reforms from four main aspects.
Chapter 1: Interest Rate Liberalization: Literature Review, which primarily introduces domestic and international theoretical research achievements on interest rate liberalization.
Chapter 2: Practices of Interest Rate Liberalization: A Global Perspective.
Chapter 3: China's Practices of Interest Rate Liberalization, which mainly introduces the motivations, processes, steps, outcomes, and risks of interest rate liberalization reforms in industrialized countries, emerging industrialized economies and regions, and Central and Eastern European transition countries. It also covers some basic ideas of China's interest rate liberalization reforms, reforms in deposit and loan interest rates, as well as the specific process of interest rate reforms.
Chapter 4: Risk Analysis of Interest Rate Liberalization Reform. Interest rate liberalization introduces risks that were not present during the period of interest rate control. Based on the duration of risk, interest rate liberalization reform risks can be divided into phased risks and permanent risks.
Chapter 5: Risk Control in Interest Rate Liberalization Reform: Properly Arranging the Reform Timeline. Steadily advancing China's interest rate liberalization reform and properly arranging the timeline of interest rate reforms is of great significance for risk control.
Chapter 6: Risk Control in Interest Rate Liberalization Reform: Financial Regulation.
Chapter 7: Risk Control in Interest Rate Liberalization Reform: Macro-Control. This primarily manifests as imbalances within the economy, increased fiscal imbalance risks, certain levels of fragility in the financial system, and more adverse external shocks.
Chapter 8: Risk Control in Interest Rate Liberalization Reform: Micro-Management. Interest rate liberalization requires marketization of enterprises, meaning enterprises must become true market entities, with internal ownership constraints and external market competition constraints. Only in this way can enterprises have incentives to pursue maximum profits and minimum costs, respond sensitively to market values including interest rates, and adjust their production and operational activities in a timely manner based on price changes, including interest rate fluctuations, to effectively manage and prevent interest rate risks.
In the conclusion of this paper, the author attempts to propose some suggestions for steadily advancing China's interest rate liberalization reform and also puts forward some preliminary ideas for the specific steps of the interest rate market.