Effect of shadow banking on the relation between capital and liquidity creation
學年 110
學期 1
出版（發表）日期 2021-11-01
作品名稱 Effect of shadow banking on the relation between capital and liquidity creation
作品名稱（其他語言）
著者 Ting-Hsuan Chen; Chung-Hua Shen; Meng-Wen Wu; Kuo-Jui Huang
單位
出版者
著錄名稱、卷期、頁數 International Review of Economics and Finance 76, p.166-184
摘要 This research investigates the effects of shadow banking on the relation between capital and liquidity creation in China's banking industry. We consider three trust beneficiary rights as the proxies for shadow bank activities, which transform risky corporate loans into interbank loans inside the banking system. Findings present that these activities tend to exaggerate the regulatory capital ratios and liquidity creation measures and then distort the relationship between capital and liquidity creation ratios. The result shows that before removing the influence of shadow banking, banks with a lower capital ratio would engage in more liquidity creation, thus supporting the financial risk-taking hypothesis. By contrast, the risk-absorption hypothesis exists whereby banks would engage in more liquidity creation when they have a higher capital ratio if we consider the effect of shadow banking. Our study also contributes to policymaking by indicating that a failure to use correct information for the assessments of capital and liquidity creation can lead to false conclusion that China's banks are safe, which further mislead any regulatory policy.
關鍵字 Shadow banking; Capital adequacy ratio; Liquidity risk; Risk-taking hypothesis; Risk-absorption hypothesis; Trust beneficial rights
語言 en
ISSN 1873-8036; 1059-0560
期刊性質 國外
收錄於 SSCI EconLit Scopus ABS* NotTSSCI
產學合作
通訊作者 Meng-Wen Wu
審稿制度 是
國別 USA
公開徵稿
出版型式 ,電子版,紙本