ABSTRACT
Chapter 1 mentions that both Naughton and Lardy researched China’s financial system: the former making the point that reform of the banking system was crucial to the well- being of the economy (Naughton 1998) and the latter (Lardy 1998) stressing that the NPL issue had to be addressed urgently. Although both writers did not mention it as such, the implementation of sound corporate governance in the banking system was a crucial issue central to the attainment of both objectives.
