Who Pays Chinas Bank Restructuring Bill?
Author InfoGuonan Ma (Senior Economist, Representative Office for Asia and the Pacific Bank for International Settlements, 78/F Two International Financial Centre, 8 Finance Street, Central Hong Kong, SAR, China) Abstract This paper addresses questions related to the cost of China’s bank restructuring and financing. We first propose a framework for recognizing losses. Then, we examine the recent major moves by the Chinese government to repair the country’s bank balance sheets. Finally, we explore the implications of the Chinese ways of funding the bank restructuring. We find that the Chinese government has been decisive in confronting the costly task of bank restructuring. Looking through the elaborate funding arrangements adopted so far, the Chinese taxpayers have paid most of the bill. (c) 2007 The Earth Institute at Columbia University and the Massachusetts Institute of Technology. Download InfoTo download: If you experience problems downloading a file, check if you have the proper
