01854cas a2200265 a 4500 AALejournalIMF005977 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451873184 1018-5941 BD-DhAAL BD-DhAAL Feyzioglu, Tarhan. Interest Rate Liberalization in China / Tarhan Feyzioglu, Nathan Porter, Elod Takats. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students What might interest rate liberalization do to intermediation and the cost of capital in China? China's most binding interest rate control is a ceiling on the deposit rate, although lending rates are also regulated. Through case studies and model-based simulations, we find that liberalization will likely result in higher interest rates, discourage marginal investment, improve the effectiveness of intermediation and monetary transmission, and enhance the financial access of underserved sectors. This can occur without any major disruption. International experience suggests, however, that achieving these benefits without unnecessary instability, requires vigilant supervision, governance, and monetary policy, and a flexible policy toolkit. Mode of access: Internet Porter, Nathan. Takats, Elod. IMF Working Papers; Working Paper ; No. 2009/171 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/171/001.2009.issue-171-en.xml IMF e-Library