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

    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

    Nguyen, Vo Hong Thai ; Boateng, Agyenim. / The impact of excess reserves beyond precautionary levels on Bank Lending Channels in China. In: Journal of International Financial Markets, Institutions and Money. 2013 ; Vol. 26. pp. 358-377.
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    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",
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    Nguyen, VHT & Boateng, A 2013, 'The impact of excess reserves beyond precautionary levels on Bank Lending Channels in China', Journal of International Financial Markets, Institutions and Money, vol. 26, pp. 358-377. https://doi.org/10.1016/j.intfin.2013.07.002

    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 journal › Article

    TY - JOUR

    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

    Y1 - 2013/10

    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 -

    Nguyen VHT, Boateng A. The impact of excess reserves beyond precautionary levels on Bank Lending Channels in China. Journal of International Financial Markets, Institutions and Money. 2013 Oct;26:358-377. https://doi.org/10.1016/j.intfin.2013.07.002

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