Patrick Honohan
- Published in print:
- 2008
- Published Online:
- August 2013
- ISBN:
- 9780262042543
- eISBN:
- 9780262271462
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262042543.003.0010
- Subject:
- Economics and Finance, Econometrics
This chapter turns to the Chinese banking environment and how China has been responding to the huge loan losses and the growing scale of bank deposits. These scores suggest a worsening of moral ...
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This chapter turns to the Chinese banking environment and how China has been responding to the huge loan losses and the growing scale of bank deposits. These scores suggest a worsening of moral hazard and the possibility that the preconditions for deposit insurance to improve bank soundness are not present. Small depositors in China, however, have not been left unprotected, even despite the fact that a formal system of depositor protection has not yet been established. The chapter then looks at China’s more recent experience and how the government’s role in Chinese banking system has been evolving. Furthermore, the chapter discusses how despite a formal system, China’s depositors remain protected in other ways. Finally, new deposit insurance schemes are suggested that have previously garnered positive results and even guided past rescues.Less
This chapter turns to the Chinese banking environment and how China has been responding to the huge loan losses and the growing scale of bank deposits. These scores suggest a worsening of moral hazard and the possibility that the preconditions for deposit insurance to improve bank soundness are not present. Small depositors in China, however, have not been left unprotected, even despite the fact that a formal system of depositor protection has not yet been established. The chapter then looks at China’s more recent experience and how the government’s role in Chinese banking system has been evolving. Furthermore, the chapter discusses how despite a formal system, China’s depositors remain protected in other ways. Finally, new deposit insurance schemes are suggested that have previously garnered positive results and even guided past rescues.
Augusto de la Torre, María Soledad Martínez Pería, and Sergio L. Schmukler
- Published in print:
- 2010
- Published Online:
- August 2013
- ISBN:
- 9780262014687
- eISBN:
- 9780262289412
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262014687.003.0009
- Subject:
- Economics and Finance, Econometrics
This chapter analyzes the drivers and obstacles to lending to small and medium enterprises (SMEs). Of particular interest is the role of competitive and institutional environments in shaping SME ...
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This chapter analyzes the drivers and obstacles to lending to small and medium enterprises (SMEs). Of particular interest is the role of competitive and institutional environments in shaping SME lending, and more generally banks' interest in dealing with SMEs. The study compares banks in Argentina and Chile. Among the main findings are that, despite institutional differences, SMEs have become a strategic sector for most banks in both countries. Banks seem to be focusing on SMEs because the segment's profitability is expected to more than compensate for the higher implied costs and risks, especially given thinning margins in the corporate and retail sectors due to increased competition.Less
This chapter analyzes the drivers and obstacles to lending to small and medium enterprises (SMEs). Of particular interest is the role of competitive and institutional environments in shaping SME lending, and more generally banks' interest in dealing with SMEs. The study compares banks in Argentina and Chile. Among the main findings are that, despite institutional differences, SMEs have become a strategic sector for most banks in both countries. Banks seem to be focusing on SMEs because the segment's profitability is expected to more than compensate for the higher implied costs and risks, especially given thinning margins in the corporate and retail sectors due to increased competition.
Felicitas Nowak-Lehmann, Sebastian Vollmer, and Inmaculada Martínez-Zarzoso
- Published in print:
- 2010
- Published Online:
- August 2013
- ISBN:
- 9780262013963
- eISBN:
- 9780262289320
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262013963.003.0008
- Subject:
- Economics and Finance, Econometrics
Latin American countries have lost competitiveness in world markets in comparison to China for the last two decades. This chapter examines the reasons behind the decline in Latin American trade share ...
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Latin American countries have lost competitiveness in world markets in comparison to China for the last two decades. This chapter examines the reasons behind the decline in Latin American trade share and measures the effects of relative productivity, changes in relative unit labor costs, changes in relative unit values, and changes in the overall price level on relative export strength. The analysis is limited to comparisons between China and Mexico in selected single markets (the United States, Japan, Korea, Germany, the United Kingdom, Spain, and Argentina).Less
Latin American countries have lost competitiveness in world markets in comparison to China for the last two decades. This chapter examines the reasons behind the decline in Latin American trade share and measures the effects of relative productivity, changes in relative unit labor costs, changes in relative unit values, and changes in the overall price level on relative export strength. The analysis is limited to comparisons between China and Mexico in selected single markets (the United States, Japan, Korea, Germany, the United Kingdom, Spain, and Argentina).
