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    Drivers of bank loan growth in China: government or market?

    Chen, Xiaohong and Wohlfarth, Paul (2019) Drivers of bank loan growth in China: government or market? Working Paper. Birkbeck, University of London, London, UK.

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    Abstract

    This paper investigates China’s banking system in a post-crisis environment, 2008- 2018, focusing on determinants of bank lending. We use a panel of 14 Chinese listed banks, for which there is data over this period. We group these 14 banks into various bank-clusters, classified by ownership and systemic importance. Possible determinants of loan growth are divided into two sets of variables: bureaucratic variables and economic variables. We find that for individual banks and bank groups bureaucratic variables are very significant and the economic variables have comparatively little influence, which is consistent with the state retraining quite a lot of control. However, pooling of the data gives evidence for the influence of economic variables. The size of the coefficients is similar to the average of the individual banks but they are now significant, reflecting the larger sample size. Thus the pooled estimates are more supportive of the role of bankspecific market forces in determining loan growth.

    Metadata

    Item Type: Monograph (Working Paper)
    Additional Information: BCAM Working Paper Series 1909. ISSN 1745-8587
    Keyword(s) / Subject(s): Loan growth, Listed banks, Bureaucratic effects, Market effects, China
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Research Centre: Applied Macroeconomics, Birkbeck Centre for
    Depositing User: Administrator
    Date Deposited: 26 Nov 2019 11:31
    Last Modified: 26 Nov 2019 13:06
    URI: http://eprints.bbk.ac.uk/id/eprint/30079

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