Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/240381 
Year of Publication: 
2021
Series/Report no.: 
BOFIT Discussion Papers No. 3/2021
Publisher: 
Bank of Finland, Bank of Finland Institute for Emerging Economies (BOFIT), Helsinki
Abstract: 
This work examines the impact of bank efficiency on the bank lending channel in China. Using a sample of 175 Chinese banks over the period 2006-2017, we investigate how the reaction of the loan supply to monetary policy actions depends on a bank's efficiency. While bank efficiency does not exert an impact on the effectiveness of monetary policy transmission overall, it does favor the transmission of monetary policy for banks with low loan-to-deposit ratios. In addition, the expansion of shadow banking activities has been associated with a positive impact of bank efficiency on monetary policy transmission. These results suggest that bank efficiency may influence the bank lending channel in certain cases.
Subjects: 
Chinese banks
monetary policy
bank efficiency
bank lending channel
JEL: 
E52
G21
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-364-5
Document Type: 
Working Paper

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