The impact of excess reserves beyond precautionary levels on Bank Lending Channels in China

Vo Hong Thai Nguyen; Agyenim Boateng

doi:10.1016/j.intfin.2013.07.002

The impact of excess reserves beyond precautionary levels on Bank Lending Channels in China

Vo Hong Thai Nguyen, Agyenim Boateng

Research output: Contribution to journal › Article › peer-review

Abstract

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.

Original language	English
Pages (from-to)	358-377
Number of pages	20
Journal	Journal of International Financial Markets, Institutions and Money
Volume	26
Early online date	23 Jul 2013
DOIs	https://doi.org/10.1016/j.intfin.2013.07.002
Publication status	Published - Oct 2013

Keywords

bank lending channel
credit supply
China

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10.1016/j.intfin.2013.07.002

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title = "The impact of excess reserves beyond precautionary levels on Bank Lending Channels in China",

abstract = "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. ",

keywords = "bank lending channel, credit supply, China",

author = "Nguyen, {Vo Hong Thai} and Agyenim Boateng",

year = "2013",

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doi = "10.1016/j.intfin.2013.07.002",

language = "English",

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T1 - The impact of excess reserves beyond precautionary levels on Bank Lending Channels in China

AU - Nguyen, Vo Hong Thai

AU - Boateng, Agyenim

PY - 2013/10

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N2 - 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.

AB - 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.

KW - bank lending channel

KW - credit supply

KW - China

U2 - 10.1016/j.intfin.2013.07.002

DO - 10.1016/j.intfin.2013.07.002

M3 - Article

VL - 26

SP - 358

EP - 377

JO - Journal of International Financial Markets, Institutions and Money

JF - Journal of International Financial Markets, Institutions and Money

SN - 1042-4431

ER -

The impact of excess reserves beyond precautionary levels on Bank Lending Channels in China

Abstract

Keywords

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