Citation
Kang, Kuan and Mohd Ashhari, Zariyawati and Yahya, Mohamed Hisham and Soh, Wei Ni and Li, Yue
(2024)
Interest rate liberalization and the stability of the Chinese banking system: exploring chained mediation effects of deposit competitiveness and wealth management products.
Finance Research Letters, 62 (pt. B).
art. no. 105222.
pp. 1-11.
ISSN 1544-6123; eISSN: 1544-6131
Abstract
This study uses quarterly unbalanced panel data of 46 commercial banks and adopts a two-step system generalized method of moments to inspect the direct and indirect effects of interest rate liberalization (IRL) on banking stability from 2015 to 2021 in China. The results show that IRL enhances banking stability and brings deposit competition among banks, which affects banking stability. Meanwhile, wealth management products (WMPs) with higher market-based yields have increased dramatically as competitive substitution of deposits. The bootstrap test confirms the chained mediation effects of deposit competitiveness and WMPs development on the relationship between IRL and banking stability.
Download File
Official URL or Download Paper: https://www.sciencedirect.com/science/article/pii/...
|
![[img]](http://psasir.upm.edu.my/style/images/fileicons/text.png)
Additional Metadata
| Item Type: | Article |
|---|---|
| Divisions: | School of Business and Economics |
| DOI Number: | https://doi.org/10.1016/j.frl.2024.105222 |
| Publisher: | Elsevier |
| Keywords: | Banking stability; Chained mediation effects; Deposit competitiveness; Interest rate liberalization; Wealth management products |
| Depositing User: | Ms. Nur Faseha Mohd Kadim |
| Date Deposited: | 21 Apr 2025 02:43 |
| Last Modified: | 21 Apr 2025 02:43 |
| Altmetrics: | http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1016/j.frl.2024.105222 |
| URI: | http://psasir.upm.edu.my/id/eprint/115407 |
| Statistic Details: | View Download Statistic |
Actions (login required)
 |
View Item |
