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Competition and Bank Liquidity Creation

文献类型: 外文期刊

作者: Jiang, Liangliang 1 ; Levine, Ross 2 ; Lin, Chen 3 ;

作者机构: 1.Hong Kong Polytech Univ, Sch Accounting & Finance, Hong Kong, Peoples R China

2.Univ Calif Berkeley, Haas Sch Business, Berkeley, CA 94720 USA

3.Univ Hong Kong, Fac Business & Econ, Hong Kong, Peoples R China

期刊名称:JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS ( 影响因子:3.9; 五年影响因子:5.6 )

ISSN: 0022-1090

年卷期: 2019 年 54 卷 2 期

页码:

收录情况: SCI

摘要: We use a new identification strategy to assess whether an intensification of competition among banks increases or decreases the provision of a key banking service: liquidity creation. Although theory offers conflicting predictions about the impact of competition on liquidity creation, we find that regulatory-induced competition reduces liquidity creation. Consistent with a subset of models emphasizing that banks pushed toward insolvency reduce risk-taking activities, we discover that regulatory-induced competition reduces liquidity creation more among banks with less risk-absorbing capacity (e.g., less profitable banks).

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