Promoting High-Quality Growth Through Financial Reform in the People’s Republic of China

This report assesses the effects of financial development on economic performance in the People’s Republic of China (PRC) and attempts to shed light on future reform directions.

Measuring the evolution of competition and the impact of the financial reform in the Mexican banking sector, 2008-2019

This paper analyzes the monthly evolution of bank competition in Mexico from 2008 to 2019 using different measures. Subsequently, we analyze whether the 2014 financial reform had an effect on some of our competition measures. We use ordinary and quantile regression techniques and Markov switching models to identify changes in regimes. We find partial empirical evidence supporting the idea that the reform had a positive average effect and increased banks competition intensity during a few years. However, we also document heterogeneity as some large banks benefited from an increase in their market power. We perform several robustness tests and report that our measures lead to values that are congruent and similar to those available in the literature. The main policy lesson of our research is that regulators could benefit from the monitoring of competition evolution using a finer time frequency.

HUGENBERG CONTRA ERZBERGER: CRITICISM OF THE FINANCIAL REFORM OF THE REICHSMINISTER IN THE WEIMAR NATIONAL ASSEMBLY

The article deals with the criticism of the financial reform of Reich Minister Matthias Erzberger in the Weimar National Assembly from the right-wing parties that expressed the interests of big proprietors and the industrial elite. Erzberger, seeking to create a centralized tax system, has come across consistent criticism from the leader of the radical wing of the German National People's Party faction Alfred Hugenberg, a Pan-German, experienced financier and former head of the Friedrich Krupp AG concern. The Hugenberg's criticism, who was seeking to make a political career, were the draft laws on socialization and emergency tax, submitted to the deputies of the National Assembly. The campaign against Erzberger, accompanied by sharp attacks and widespread public condemnation, ended with the rejection of part of the Reich Minister's law drafts and the subsequent resignation. The analysis of the published political speeches of Hugenberg and materials from periodicals shed light on the specifics of parliamentary discussions, allowing to reveal the arguments of the right against the continuation of democratization of the Weimar Republic in the early years of its existence.

Loan Securitization in China's Financial Reform — Based on Evidence from Thirty-five Listed Banks in China

This paper studies loan securitization in China's financial reform. By using Logit and Tobit model to study 35 Chinese listed commercial bank's data from 2012 to 2019, the author employs the factor analysis to summarize the information from some financial indicators that reveals banks' securitization determinants. The author also conducts a sensitive analysis and a credit-deposit relationship estimation to examine the impacts of loan securitization. It is found that determinants of China's banks' securitization include cost advantage exploitation and performance promotion. The incentive of risk transfer involves risks from stock market rather than non-performing loan. There is little evidence that loan securitization improves the income structure of banks and the investment efficiency of financial market. Moreover, the credit-deposit relationship of securitized banks is improved. The paper concludes that China's loan securitization market welcomes large banks with high quality loan rather than small banks. Default risks of banks themselves rather than that of loan customers affect bank's securitization decision more. Safe and high-yield spread business is still the best investment of loan securitization proceeds. The loan securitization market should be developed continuously and rapidly, which is of great implications to China's financial reform.