Impacts of Cross-border Capital Flow on China’s Commercial Banks’ Soundness Based on GMM of Dynamic Panel System

DOI

10.2991/978-94-6463-102-9_67How to use a DOI?

Keywords

Cross-border capital flows; Bank soundness; Commercial bank; GMM system; Panel study

Abstract

The paper measured the soundness of Chinese commercial banks based on data from 2006Q1 to 2016Q3 through building index system, and built the economic model by utilizing GMM system to demonstrate the impact and mechanism of cross-border capital flows on banks’ soundness. The results show that the banking soundness increases gradually from 2006 to 2010, and remains stable after 2012. We find that the rise of overall cross-border capital net flow significantly decreases the degree of commercial banks’ soundness. Both portfolio investment and other investment could impair banks' soundness, but the net flow of direct investment exerts significantly a positive effect on banks' soundness.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Xiulan Chen
AU  - Zhaomin Zou
PY  - 2022
DA  - 2022/12/29
TI  - Impacts of Cross-border Capital Flow on China’s Commercial Banks’ Soundness Based on GMM of Dynamic Panel System
BT  - Proceedings of the 2022 2nd International Conference on Business Administration and Data Science (BADS 2022)
PB  - Atlantis Press
SP  - 643
EP  - 656
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6463-102-9_67
DO  - 10.2991/978-94-6463-102-9_67
ID  - Chen2022
ER  -