Capital Constraints and the Credit Structure of Commercial Banks: Evidence from China

Junxun Dai ()
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Junxun Dai: Department of Finance, Wuhan University, China

Journal for Economic Forecasting, 2013, issue 4, 109-123

Abstract: This study focuses on the impact of capital constraints on the credit structure of commercial banks. Through theoretical modeling and optimization process, this study draws the conclusions that large-sized banks would grant more loans to large-sized enterprises and fewer loans to small-sized enterprises under capital constraints, but small-sized banks would grant more loans to large-sized enterprises just under the liberalization of interest rates and capital constraints. This study also makes empirical tests using the 2002-2012 yearly panel data from commercial banks in China and panel estimations with SYS-GMM to examine the changes in the credit structures of commercial banks under capital constraints. The evidence from China indicate that the estimated impact of capital constraints on the change i

Keywords: credit structure; capital constraints; Basel Accord; SYS-GMM; commercial banks (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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