In one critical respect, however, the financial system appears to have retrogressed. The central bank, the People's Bank of China (PBC), controls interest rates in a way that has led to significant financial repression as inflation has risen in recent years. As explained in this policy brief,...

The banking system of the People's Republic of China (PRC) is now the largest in the world, and its capital markets are rapidly approaching the size of those in the advanced economies. This paper traces the evolution of the PRC's financial system away from a traditional bank-dominated and...

Despite an erosion of consensus on its benefits, capital account convertibility remains a long-term goal of China. This paper identifies three major preconditions for convertibility in China: a strong domestic banking system, relatively developed domestic financial markets, and an equilibrium...