Zhou Xiaochuan: Improve corporate governance and develop capital market Speech by Mr Zhou Xiaochuan, Governor of the People’s Bank of China, at the High-level Forum on China’s Reform, Beijing, 13 July 2005. *  *  *  Dear friends, ladies and gentlemen,  1  Lucas, Robert E., Jr. (1988). “On the Mechanics of Economic Development.” Journal of Monetary Economics, 22, July, 3-42.
Large banks also relied on short-term wholesale funding provided by the shadow banking sector as a source of cheap financing. Then, questions arose about the quality of the mortgage loans and other assets underlying the liabilities of SIVs and asset-backed commercial paper conduits and, simultaneously, about the continued willingness and capacity of their sponsors to support them.