Proceedings of the 10th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2022)

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Does Macroprudential Policy Reduce Bank Risk-Taking?

A quasi-natural experiments based on “Administrative Measures for the Capital of Commercial Banks (for Trial Implementation)”

Authors
Yongkui Li1, *, Qixuan Du1, Jinli Liu1
1School of Economics, Southwest University of Political Science & Law, Chongqing, China
*Corresponding author. Email: yongkuili@aliyun.com
Corresponding Author
Yongkui Li
Available Online 21 July 2023.
DOI
10.2991/978-94-6463-194-4_45How to use a DOI?
Keywords
Macroprudential policy; Bank risk-taking; Difference-in-differences
ABSTRACT

Based on the unbalanced panel data of 141 commercial banks in China from 2008 to 2020, this paper uses difference‐in‐differences models to study the impact of macroprudential policies on banks' risk-taking. The empirical results show that China's implementation of macro-prudential policies can effectively improve the effect of bank risk prevention. Further heterogeneity analysis found that, compared with banks with lower capital adequacy ratios, macro-prudential policies had a more significant impact on the risk-taking behavior of commercial banks with higher capital adequacy ratios. Commercial banks with higher operating efficiency implement macro-prudential policies based on higher capital regulatory requirements, which have a more significant effect on their risk-taking. Based on the research conclusions, this paper puts forward relevant policy recommendations to strengthen the supervision of bank capital in a differentiated way.

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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Volume Title
Proceedings of the 10th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
21 July 2023
ISBN
10.2991/978-94-6463-194-4_45
ISSN
2352-5428
DOI
10.2991/978-94-6463-194-4_45How to use a DOI?
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.

Cite this article

risenwbib
TY  - CONF
AU  - Yongkui Li
AU  - Qixuan Du
AU  - Jinli Liu
PY  - 2023
DA  - 2023/07/21
TI  - Does Macroprudential Policy Reduce Bank Risk-Taking?
BT  - Proceedings of the 10th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2022)
PB  - Atlantis Press
SP  - 323
EP  - 329
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-194-4_45
DO  - 10.2991/978-94-6463-194-4_45
ID  - Li2023
ER  -