City commercial banks and credit allocation: Firm-level evidence

Arbeitspapier

This paper investigates how government-led banking liberalization affects credit allocation by banks using as a quasi-natural experiment the establishment of city commercial banks (CCBs) in China. Based on more than three million corporate financial statements spanning over 16 years, we find that the establishment of CCBs led to a 6-14 % drop in debt funding for private firms, as well as a 1-2 % rise in their funding costs. At the same time, private infrastructure firms enjoyed a nearly 6 % increase in debt funding and more than 100-basis-point drop in interest costs despite their inferior credit quality. The debt financing of private firm appears most severely affected in municipalities where officials face high promotional pressures or fiscal constraints.

Angaben zum Objekt

• ISBN: 978-952-323-369-0
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: BOFIT Discussion Papers ; No. 4/2021

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Corporate Finance and Governance: Government Policy and Regulation
• Thema: banking liberalization ; city commercial banks ; bank lending ; credit allocation ; political economy in banking

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kang, Shulong ; Dong, Jianfeng ; Yu, Haiyue ; Cao, Jin ; Dinger, Valeriya
• Ereignis: Veröffentlichung
• (wer): Bank of Finland, Bank of Finland Institute for Emerging Economies (BOFIT)
• (wo): Helsinki
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/240382
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ