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- Publisher Website: 10.1016/j.jce.2020.07.006
- Scopus: eid_2-s2.0-85088793361
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Article: The varying shadow of China's banking system
Title | The varying shadow of China's banking system |
---|---|
Authors | |
Keywords | banking system China credit allocation investment allocation shadow banking |
Issue Date | 2021 |
Citation | Journal of Comparative Economics, 2021, v. 49, n. 1, p. 135-146 How to Cite? |
Abstract | The rapid rise of shadow banking activities in China since 2009 has attracted a great deal of attention in both academia and policy circles. Most existing studies and commentary on China's shadow banking have treated it as a recent phenomenon that appeared after the Global Financial Crisis and China's response to it. In this paper, I argue that shadow banking is not a new phenomenon; it has always been a part of China's financial system since the 1980s, and arose from the need to get around various lending restrictions imposed by the central government on banks. I also emphasize that there are two types of shadow banking activities, those initiated by banks and those initiated by local governments or state-owned enterprises. I provide evidence suggesting that the shadow banking activities initiated by banks prior to 1996 helped directing credits to the more productive non-state sector and were efficiency enhancing. In recent years, however, I find that the shadow banking loans have a positive effect on real estate investments only, and their effects on investments by private firms outside the real estate sector have been negative. |
Persistent Identifier | http://hdl.handle.net/10722/315330 |
ISSN | 2023 Impact Factor: 2.8 2023 SCImago Journal Rankings: 1.504 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Zhu, Xiaodong | - |
dc.date.accessioned | 2022-08-05T10:18:29Z | - |
dc.date.available | 2022-08-05T10:18:29Z | - |
dc.date.issued | 2021 | - |
dc.identifier.citation | Journal of Comparative Economics, 2021, v. 49, n. 1, p. 135-146 | - |
dc.identifier.issn | 0147-5967 | - |
dc.identifier.uri | http://hdl.handle.net/10722/315330 | - |
dc.description.abstract | The rapid rise of shadow banking activities in China since 2009 has attracted a great deal of attention in both academia and policy circles. Most existing studies and commentary on China's shadow banking have treated it as a recent phenomenon that appeared after the Global Financial Crisis and China's response to it. In this paper, I argue that shadow banking is not a new phenomenon; it has always been a part of China's financial system since the 1980s, and arose from the need to get around various lending restrictions imposed by the central government on banks. I also emphasize that there are two types of shadow banking activities, those initiated by banks and those initiated by local governments or state-owned enterprises. I provide evidence suggesting that the shadow banking activities initiated by banks prior to 1996 helped directing credits to the more productive non-state sector and were efficiency enhancing. In recent years, however, I find that the shadow banking loans have a positive effect on real estate investments only, and their effects on investments by private firms outside the real estate sector have been negative. | - |
dc.language | eng | - |
dc.relation.ispartof | Journal of Comparative Economics | - |
dc.subject | banking system | - |
dc.subject | China | - |
dc.subject | credit allocation | - |
dc.subject | investment allocation | - |
dc.subject | shadow banking | - |
dc.title | The varying shadow of China's banking system | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1016/j.jce.2020.07.006 | - |
dc.identifier.scopus | eid_2-s2.0-85088793361 | - |
dc.identifier.volume | 49 | - |
dc.identifier.issue | 1 | - |
dc.identifier.spage | 135 | - |
dc.identifier.epage | 146 | - |
dc.identifier.eissn | 1095-7227 | - |
dc.identifier.isi | WOS:000621430200008 | - |