Bank Runs in China: Evidence from a Dynamic Panel Model

Xuefang Liu, W. Robert J. Alexander and Sajid Anwar

Arthaniti: Journal of Economic Theory and Practice, 2018, vol. 17, issue 1, 15-30

Abstract: The rise of China as a global economic power has caused concern that a crisis in Chinese banking could lead to a worldwide downturn similar to the Global Financial Crisis. Early warning indicators, such as the credit-to-GDP gap and the debt service ratio, are worrying. It is, therefore, worthwhile to study the key factors affecting bank deposits in China. We estimate a dynamic panel model applied to a panel of 63 Chinese banks and find that bank-specific fundamentals, as opposed to macroeconomic factors, are the main drivers of changes in bank deposits. JEL: E44, G21, G28

Keywords: China; bank runs; bank fundamentals; macroeconomic factors; Arellano–Bond model (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:artjou:v:17:y:2018:i:1:p:15-30

DOI: 10.1177/0976747918773128

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