| Foreword | 6 |
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| Preface | 9 |
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| Table of contents | 11 |
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| Abbreviations | 14 |
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| 1 Introduction | 15 |
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| 1.1 Original problem and objectives | 15 |
| 1.2 Methodology | 20 |
| 1.3 Categorization of topic | 22 |
| 1.4 Definition of key terms | 23 |
| 1.5 Structure of the thesis | 27 |
| 2 The Indian banking sector | 30 |
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| 2.1 Development of the Indian banking sector | 30 |
| 2.2 Current structure of the banking system | 50 |
| 2.3 Political, economic and institutional environment of the banking sector | 55 |
| 2.4 Conclusion | 61 |
| 3 The Chinese banking sector | 63 |
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| 3.1 Development and structure of the banking sector | 63 |
| 3.2 Major reform areas and status of the sector | 70 |
| 3.3 Similarities and differences to the Indian banking sector | 76 |
| 3.4 Conclusion | 79 |
| 4 Banking sector functions and coordination | 81 |
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| 4.1 Functions of the banking sector | 81 |
| 4.2 State involvement in the banking sector | 86 |
| 4.3 The financial liberalization hypothesis | 96 |
| 4.4 Evaluation of financial liberalization | 100 |
| 4.5 Conclusion | 113 |
| 5 Management of transformation processes | 114 |
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| 5.1 Classification of transformatory changes and applicability to India | 114 |
| 5.2 Initial policy recommendations for transition countries | 120 |
| 5.3 Elements of transformation processes | 122 |
| 5.4 Management of transition processes | 135 |
| 5.5 Differences in transformation processes in India and China | 140 |
| 5.6 Conclusion | 145 |
| 6 Framework for banking sector liberalization | 148 |
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| 6.1 Overview and special considerations | 148 |
| 6.2 Transformation of the banking sector | 151 |
| 6.3 Measurement of process and results of banking sector liberalization | 170 |
| 6.4 Macroeconomic effects of banking sector liberalization | 191 |
| 6.5 Conclusion | 194 |
| 7 Evaluation of banking sector liberalization in India and China | 196 |
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| 7.1 Qualitative evaluation | 196 |
| 7.2 Quantitative evaluation | 206 |
| 7.3 Conclusion | 251 |
| 8 Policy recommendations and implications of research findings | 253 |
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| 8.1 Summary of goals and results | 253 |
| 8.2 Policy recommendations | 258 |
| 8.3 Limitations of research approach | 263 |
| 8.4 Perspectives for future research | 264 |
| Appendix | 267 |
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| References | 285 |