Analysis of the Mediating Effect of Economic Policy Uncertainty Affecting Commercial Bank Credit

Juan Meng and Zhe Zhou
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Juan Meng: Business School, Hunan First Normal University, Changsha, China
Zhe Zhou: Rady school of management, University of California San Diego, San Diego, USA

Financial Economics Letters, 2022, vol. 1, issue 1, 13-20

Abstract: We analyze the annual microdata of China's 100 commercial banks from 2007 to 2018 using the mediating effect analysis method, analyze the negative impact of economic policy uncertainty on the credit scale of commercial banks, and then verify the intermediary effects of the operational risks and short-term capital liquidity of commercial banks in the impact of economic policy uncertainty on the scale of commercial bank credit, separately. Moreover, we find that non-state-owned commercial banks, large-scale commercial banks, low-leverage commercial banks, and commercial banks with low profitability are more susceptible to economic policy uncertainty affecting commercial bank credit growth through short-term capital liquidity, and vice versa.

Keywords: Economic policy uncertainty Mediating effect; Credit scale (search for similar items in EconPapers)
Date: 2022
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