Large commercial banks reacted, among other ways, by seeking removal or relaxation of the regulations that confined bank activities, affiliations, and geographic reach – a request to which supervisory agencies and legislators were generally sympathetic because of the potential threat to the viability of the traditional commercial banking system.
Can China adjust its savings ratio effectively? During the Asian financial crisis, some western academia suggested devaluating yuan. Some others preferred a stable yuan, for the sake of preventing competitive devaluation. China, as a responsible large country, did not devalue and paid the price – a fairly slow recovery.