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

Vo Hong Thai Nguyen, Agyenim Boateng

    Research output: Contribution to journalArticle

    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 languageEnglish
    Pages (from-to)358-377
    Number of pages20
    JournalJournal of International Financial Markets, Institutions and Money
    Volume26
    Early online date23 Jul 2013
    DOIs
    Publication statusPublished - Oct 2013

    Fingerprint

    Bank lending channel
    China
    Monetary policy
    Credit supply
    Policy change
    Capitalization
    Monetary policy shocks
    Interaction
    Liquidity
    Bank size

    Keywords

    • bank lending channel
    • credit supply
    • China

    Cite this

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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",
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    The impact of excess reserves beyond precautionary levels on Bank Lending Channels in China. / Nguyen, Vo Hong Thai; Boateng, Agyenim.

    In: Journal of International Financial Markets, Institutions and Money, Vol. 26, 10.2013, p. 358-377.

    Research output: Contribution to journalArticle

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    AU - Boateng, Agyenim

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    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.

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    KW - credit supply

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    JF - Journal of International Financial Markets, Institutions and Money

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