Does bank branch expansion increase bank risk taking? ——Intermediary channels of loan-deposit spread

Yingying Zhang, Haifeng Gu and Feng Xiong

Applied Economics Letters, 2025, vol. 32, issue 4, 487-490

Abstract: Based on the data of 197 banks in China from 2010 to 2020, this paper examines the impact of bank branch establishment on their associated risk taking, and explores the intermediary channel mechanisms of loan-deposit spread. The research findings are as follows: (1) Bank branch expansion increases bank risk taking. (2) The establishment of branches of commercial banks has significant heterogeneity characteristics on bank risk taking. (3) Branch expansion has significantly increased the level of bank risk taking through the increase of loan-deposit spread.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2023.2275648 (text/html)
Access to full text is restricted to subscribers.

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:taf:apeclt:v:32:y:2025:i:4:p:487-490

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2023.2275648

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().