01737cas a2200253 a 4500 AALejournalIMF006033 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451873368 1018-5941 BD-DhAAL BD-DhAAL Porter, Nathan. What Drives China's Interbank Market? / Nathan Porter, TengTeng Xu. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (30 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 Interest rates in China comprise a mix of both market determined interest rates (interbank rates and bond yields), and regulated interest rates (lending and deposit rates), reflecting China's gradual process of interest rate liberalization. We argue, using a theoretical model and empirical analysis, that the regulation of key retail interest rates diminishes the ability of the market determined rates to act as independent price signals, or as benchmarks for use in asset pricing and monetary policy. Further interest rate liberalization should, therefore, strengthen the information conveyed by movements in interest rates, allowing for the better pricing of risk and capital. Mode of access: Internet Xu, TengTeng. IMF Working Papers; Working Paper ; No. 2009/189 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/189/001.2009.issue-189-en.xml IMF e-Library