01723cas a2200265 a 4500 AALejournalIMF016481 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513565149 1018-5941 BD-DhAAL BD-DhAAL Anzoategui, Diego. Financial Distortions in China : A General Equilibrium Approach / Diego Anzoategui, Mali Chivakul, Wojciech Maliszewski. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (31 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 Widespread implicit guarantees and interest ceilings were major distortions in China's financial system, contributing to a misallocation of resources. We analyze the impact of removing such frictions in a general equilibrium setting. The results show that comprehensive reforms generate better outcomes than partial ones: removing the deposit rate ceiling alone increases output, but the efficiency of capital allocation does not improve. Removing implicit guarantees improves output through lower cost of capital for private companies and better resource allocation. Mode of access: Internet Chivakul, Mali. Maliszewski, Wojciech. IMF Working Papers; Working Paper ; No. 2015/274 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/274/001.2015.issue-274-en.xml IMF e-Library