Capital Injection and Reform of SOBs:A Perspective of Political Economy of FinanceThe arguments put forward in the paper include:1. Banking reforms under the motivation of governments are usually the result of external stimulus and pursuit of short-term effect. 2. With the microlevel in the economy remaining uncharged, the readjustment of equity structure in our state-owned banks (SOBs) will be doomed to failure. 3. The existence of national banking system on a worldwide basis and its efficient operation indicate that the practice to promote the efficiency of the banking system in China through artificially decreasing the ratio of SOBs is logically misguided. 4. The reason for the low efficiency of SOBs lies with their particular ways to be rewarded rather than with promoters. Therefore the conclusion drawn in the paper is what follows: The problems with our SOBs are actually an eventual reflection of the numerous contradictions and benefit games persistently existing in the reform process and should be dealt with gradually and prudently. |