Monetary policy uncertainty and bank leverage: Evidence from China

Buben Fu and Daqing Luo

Economics Letters, 2021, vol. 203, issue C

Abstract: We investigate the impact of monetary policy uncertainty on bank leverage in China. First, we imply a novel method to measure China’s monetary policy uncertainty. Second, we estimate the relationship between bank leverage ratio and monetary policy uncertainty. Our main finding is that increases in monetary policy uncertainty have a significantly negative impact on bank leverage ratio in China, especially after 2008Q4. Checked with an alternative measurement of China’s monetary policy uncertainty, our finding remains robust.

Keywords: Monetary policy uncertainty; Bank leverage; China (search for similar items in EconPapers)
JEL-codes: E32 E52 G21 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176521001439
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:203:y:2021:i:c:s0165176521001439

DOI: 10.1016/j.econlet.2021.109866

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().