This study examines the bank lending channel and the impact of bank-specific characteristics on credit supply in response to monetary policy changes in respect of involuntary excess reserves in China. Using a sample of 95 banks, this study finds that the interaction of involuntary excess reserves with bank liquidity and with large bank size is more vulnerable to monetary policy shocks, while capitalisation has an insignificant impact on credit supply in response to monetary policy changes.
|Number of pages||20|
|Journal||Journal of International Financial Markets, Institutions and Money|
|Early online date||23 Jul 2013|
|Publication status||Published - Oct 2013|
- bank lending channel
- credit supply