Tuesday 16 October
at 10.30
Qiyeu Xiong (Wuhan University): Bank characteristics, capital regulation and the transmission of bank lending channel - evidence from China’s banking industry
Abstract:
This paper focuses on the role of the banking sector in the transmission of monetary policy in China. Based on an unbalanced quarterly panel on 27 Chinese banks from 2Q2000 to 4Q2011, we use one-step system GMM method to estimate the structural equations, and find that there exists a bank lending channel in China, the central bank’s monetary policy does affect banks’ lending behaviors; larger banks are less sensitive to monetary policy, bank with better capitalization and liquidity are more likely to adjust their lending behaviors following a change in monetary stance; after the enactment of capital regulation in 2004, the strength of bank lending channel in China has generally been weakened
This paper focuses on the role of the banking sector in the transmission of monetary policy in China. Based on an unbalanced quarterly panel on 27 Chinese banks from 2Q2000 to 4Q2011, we use one-step system GMM method to estimate the structural equations, and find that there exists a bank lending channel in China, the central bank’s monetary policy does affect banks’ lending behaviors; larger banks are less sensitive to monetary policy, bank with better capitalization and liquidity are more likely to adjust their lending behaviors following a change in monetary stance; after the enactment of capital regulation in 2004, the strength of bank lending channel in China has generally been weakened
BOFIT seminars
The seminars are open to all economists interested in the subject areas covered.
You need to pre-register for the seminar with
Ms Liisa Mannila (firstname.lastname@bof.fi, phone + 358 10 831 2268).
The seminars are open to all economists interested in the subject areas covered.
You need to pre-register for the seminar with
Ms Liisa Mannila (firstname.lastname@bof.fi, phone + 358 10 831 2268).
Seminar will be held at Rauhankatu 19, 3rd floor seminar room (arrive at the Bank's Rauhankatu 19 entrance, from where you will be escorted to the BOFIT seminar room).