Banking Reform in India and China

150 Pages·2004·0.964 MB·English

by  Lawrence Sáez (auth.)

Banking Reform in
India and China
Lawrence Sáez
Banking Reform in India and China
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Banking Reform in
India and China
By
Lawrence Sáez
BANKINGREFORMININDIAANDCHINA
© Lawrence Sáez,2004.
Softcover reprint of the hardcover 1st edition 2004 978-0-312-23935-0
All rights reserved.No part of this book may be used or reproduced in any
manner whatsoever without written permission except in the case of brief
quotations embodied in critical articles or reviews.
First published 2004 by
PALGRAVE MACMILLAN™
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Companies and representatives throughout the world
Palgrave Macmillan is the global academic imprint of the Palgrave
Macmillan division of St.Martin’s Press,LLC and of Palgrave Macmillan Ltd.
Macmillan® is a registered trademark in the United States,United Kingdom
and other countries.Palgrave is a registered trademark in the European
Union and other countries.
ISBN 978-1-349-38687-1 ISBN 978-1-4039-8125-7 (eBook)
DOI 10.1057/9781403981257
Library of Congress Cataloging-in-Publication Data
Sáez,Lawrence,1965–
Banking reform in India and China / by Lawrence Sáez.
p.cm.
Includes bibliographical references and index.
1.Banks and banking—India.2.Banks and banking—China.I.Title.
HG3284.S23 2003
332.1(cid:2)0951—dc21 2003049851
A catalogue record for this book is available from the British Library.
Design by Newgen Imaging Systems (P) Ltd.,Chennai,India.
First edition:January,2004
10 9 8 7 6 5 4 3 2 1
Printed in the United States of America.
For Jackson Ming Sáez
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Contents
Acknowledgments ix
Chapter 1 Introduction 1
Chapter 2 Banking in China: The Institutional Framework 15
Chapter 3 Banking in India: The Institutional Framework 37
Chapter 4 The Political Economy of Corporate Governance 53
Chapter 5 Repression and Reform of the Financial Systems in
India and China 75
Chapter 6 Central Bank Independence: A Comparative Perspective 101
Chapter 7 Repairing Heaven? 117
References 123
Index 139
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Acknowledgments
T his book is an attempt at a comparative, critical study of India and
China’s banking reforms. The bulk of this book was written while
I was an assistant research political scientist at the Institute of East
Asian Studies at the University of California at Berkeley. During my stay at
Berkeley, I was also a visiting scholar at the Center for South Asia Studies.
I wish to thank my hosts, the late Raba Gunasekara, Joan Kask, and Steven
Poulos, for their common sense.
Final portions of the manuscript were completed while I was a visiting
research fellow at the Center for International Studies at the London School
of Economics. As such, Pam Hodges deserves special accolades. During my
academic visit to England, I was also a senior associate member at St.
Antony’s College and a visiting South Asia fellow at Queen Elizabeth House,
both at the University of Oxford. Accordingly I am indebted to my kind
sponsors both at Oxford and at the LSE, Nandini Gooptu, Barbara Harriss-
White, John Kent, Margot Light, and David Washbrook. I also wish to thank
the Asia Pacific team at Oxford Analytica. As a contributing writer in this
institution I wish to thank Euan Graham, Graham Hutchings, and Scott
Urban.
This book builds upon some of the comparative work that I developed in
my Ph.D. dissertation in the Political Science Department at the University
of Chicago. As a graduate student, Professors Lloyd and Susanne Rudolph
encouraged me to further the comparative research of economic liberalization
in India and China. For better or worse I have followed their advise to the
best of my ability.
Over the years I have benefited from discussions with many scholars and
friends whose contribution to this volume are important but cannot often be
singled out individually. Nevertheless I want to make special mention of
Montek Singh Ahluwalia, Pradipta Bagchi, Sumon Bhaumik, Delia Boylan,
K.B. Chandrashekhar, Meghnad Desai, Rafiq Dossani, Leslie Elliot-Armijo,
Stephen Green, Santanu Gupta, M. Kabir Hassan, Athar Hussain, Peter