Deposit Insurance and Bank Liquidity Creation: Evidence from a Natural Experiment in China

被引：0
|
作者：
Zhou, Xiangyi [1 ]
Li, Xinyue [2 ]
Zhou, Yifan [3 ]
Kara, Alper [4 ]
机构：
[1] Xi An Jiao Tong Univ, Jinhe Ctr Econ Res, Xian, Peoples R China
[2] Xi An Jiao Tong Univ, Jinhe Ctr Econ Res, Stand Chartered Bank China Ltd, Xian, Peoples R China
[3] Univ Leicester, Sch Business, Leicester, England
[4] Brunel Univ London, Dept Econ & Finance, Uxbridge, England
来源：
JOURNAL OF FINANCIAL SERVICES RESEARCH | 2024年
关键词：
Deposit Insurance; Liquidity Creation; China; Banks; MONETARY-POLICY; FINANCIAL INTERMEDIATION; MARKET DISCIPLINE; MORAL HAZARD; RISK-TAKING; COMPETITION; OWNERSHIP; WEALTH; REFORM; US;
D O I：
10.1007/s10693-024-00431-z
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
In this paper, we examine how the implementation of deposit insurance influences the impact of bank capital, excess lending, banking competition and monetary policy on liquidity creation of banks. Our examination uses China's introduction of deposit insurance in 2015 as a natural experiment. We find that deposit insurance positively reinforces the effect of capital but weakens that of monetary policy on liquidity creation. We do not find that deposit insurance has a significant influence on the effects of excess lending and competition on the liquidity creation of banks. We also show that the implementation of deposit insurance has heterogenous effects on the liquidity creation of large and small banks.
引用
收藏
页数：37
相关论文
共 50 条
  • [31] The real effect of liquidity provision on entrepreneurial financing: evidence from a natural experiment in China
    Liu, Bo
    Cao, Jerry
    Johan, Sofia
    Leng, Tiecheng
    EUROPEAN JOURNAL OF FINANCE, 2019, 25 (06): : 568 - 593
  • [32] Climate risk and bank liquidity creation: International evidence
    Lee, Chien-Chiang
    Wang, Chih-Wei
    Bui Tien Thinh
    Xu, Zhi-Ting
    INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS, 2022, 82
  • [33] A classroom experiment with bank equity, deposit insurance, and bailouts
    Hazlett, Denise
    JOURNAL OF ECONOMIC EDUCATION, 2016, 47 (04): : 317 - 323
  • [34] Effects of Insurance Incentives on Road Safety: Evidence from a Natural Experiment in China*
    Dionne, Georges
    Liu, Ying
    SCANDINAVIAN JOURNAL OF ECONOMICS, 2021, 123 (02): : 453 - 477
  • [35] The effect of excess lending on bank liquidity : Evidence from China
    Chen, Ting-Hsuan
    Chou, Hsiu-Hsia
    Chang, Yuan
    Fang, Hao
    INTERNATIONAL REVIEW OF ECONOMICS & FINANCE, 2015, 36 : 54 - 68
  • [36] Bank digital transformation and liquidity mismatch: Evidence from China
    Hou, Xiaohui
    Yang, Rui
    INTERNATIONAL REVIEW OF ECONOMICS & FINANCE, 2024, 92 : 581 - 597
  • [37] Bank-Specific and Macroeconomic Determinants of Bank Liquidity Creation: Evidence from MENA Countries
    Mdaghri, Anas Alaoui
    Oubdi, Lahsen
    JOURNAL OF CENTRAL BANKING THEORY AND PRACTICE, 2022, 11 (02) : 55 - 76
  • [38] Liquidity creation or de-creation: evidence from US property and liability insurance industry
    Choi, Byeongyong
    Park, Jin
    Ho, Chia-Ling
    MANAGERIAL FINANCE, 2013, 39 (10) : 938 - +
  • [39] New evidence on liquidity creation and bank capital: The roles of liquidity and political risk
    Hsieh, Meng-Fen
    Lee, Chien-Chiang
    Lin, Yi-Ching
    ECONOMIC ANALYSIS AND POLICY, 2022, 73 : 778 - 794
  • [40] Liquidity creation and bank risk-taking: Evidence from a transition market
    Vuong, Giang Thi Huong
    Phan, Phuong Thi Thanh
    Nguyen, Cuong Xuan
    Nguyen, Danh Minh
    Duong, Khoa Dang
    HELIYON, 2023, 9 (09)
12345