Inefficiencies from Financial Liberalization in the Absence of Well-Functioning Equity Markets
讨论Cho（1986）的观点：在发展中国家股票市场不健全时，全面放开银行业无法实现资本有效配置，并指出股票市场本身也存在配置效率扭曲。
Developing nations have chosen increasingly to rely on the private sector and market signals to allocate resources. However, efficient financial systems are prerequisites to this strategy. In an earlier issue of this journal, Cho (1986) questions whether full-scale liberalization of the banking sector will promote efficient capital allocation given the current state of capital markets in developing nations. 1 He concludes that without well-functioning equity markets, full-scale liberalization of the banking sector will not result in the desired objective. Substantial development of the equity market is a necessary condition for complete financial liberalization. His argument focuses on adverse selection and incentive effects that result in high-risk bank loans.2 Are equity markets free from distortions in allocative efficiency as claimed by Cho? The answer is unequivocally no for the following reasons.