Does Financial Liberalization Affect Bank Risk-Taking in China

Bibliographic Data

ID3462277
AuthorsRui Wang (0000-0001-7155-3356, Xihua University), Hang Luo (0000-0002-2492-4983, Xihua University, corresponding author)
Year2019
Volume9
Issue4
Publication date2019-10-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/2158244019887948
OpenAlexW2987651085
LanguageEN
Citations received2
References cited48

This article examines the effect of financial liberalization on bank risk-taking, using bank-level data of 169 Chinese banks from 2000-2014. Empirical results show that bank stability increases with the development of financial liberalization. We also provide evidence indicating that banks with larger size, longer operating periods, and state ownership are more salient with the development of financial liberalization. However, such positive effects of financial liberalization on bank stability may be weakened by worse macroenvironment gauged by low economic growth, poor law enforcement, and instable political conditions

Business · China · Economics · Enforcement · Financial crisis · Financial fragility · Financial system · International economics · Liberalization · Macroeconomics · Market economy · Monetary economics · Political science · Banking stability, regulation, efficiency · Insurance and Financial Risk Management · Islamic Finance and Banking Studies

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Open DOISci-HubOpen Access