Banking reform in India and China

"China and India were largely unaffected by the contagion effects of the 1997 East Asian crisis, although it did prompt the Chinese and Indian governments to start a process of banking reform in order to prevent a banking crisis from taking place. This reform process has been hindered by the fact that the banking system in each country remains under a substantial level of state ownership. Banking Reform in India and China is a critical analysis of the efforts these two countries have taken and where that reform currently stands, providing a detailed account of the existing institutional framework of India and China's financial and banking systems. Lawrence Saez especially emphasizes the role that foreign banks and newly-created private banks can play in providing adequate competition to the state-owned banking system. Citing fundamental institutional weakness in corporate governance, state-owned banking rehabilitation, and central bank independence, Saez argues that the inability by China and India to solve these structural problems could lead to a devastating banking crisis."--Jacket.