Interest rate liberalization and the stability of the Chinese banking system: exploring chained mediation effects of deposit competitiveness and wealth management products
This study uses quarterly unbalanced panel data of 46 commercial banks and adopts a two-step system generalized method of moments to inspect the direct and indirect effects of interest rate liberalization (IRL) on banking stability from 2015 to 2021 in China. The results show that IRL enhances banki...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2024
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| Online Access: | http://psasir.upm.edu.my/id/eprint/115407/ http://psasir.upm.edu.my/id/eprint/115407/1/115407.pdf |
| _version_ | 1848866768425058304 |
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| author | Kang, Kuan Mohd Ashhari, Zariyawati Yahya, Mohamed Hisham Soh, Wei Ni Li, Yue |
| author_facet | Kang, Kuan Mohd Ashhari, Zariyawati Yahya, Mohamed Hisham Soh, Wei Ni Li, Yue |
| author_sort | Kang, Kuan |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study uses quarterly unbalanced panel data of 46 commercial banks and adopts a two-step system generalized method of moments to inspect the direct and indirect effects of interest rate liberalization (IRL) on banking stability from 2015 to 2021 in China. The results show that IRL enhances banking stability and brings deposit competition among banks, which affects banking stability. Meanwhile, wealth management products (WMPs) with higher market-based yields have increased dramatically as competitive substitution of deposits. The bootstrap test confirms the chained mediation effects of deposit competitiveness and WMPs development on the relationship between IRL and banking stability. |
| first_indexed | 2025-11-15T14:25:51Z |
| format | Article |
| id | upm-115407 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:25:51Z |
| publishDate | 2024 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1154072025-04-21T02:43:31Z http://psasir.upm.edu.my/id/eprint/115407/ Interest rate liberalization and the stability of the Chinese banking system: exploring chained mediation effects of deposit competitiveness and wealth management products Kang, Kuan Mohd Ashhari, Zariyawati Yahya, Mohamed Hisham Soh, Wei Ni Li, Yue This study uses quarterly unbalanced panel data of 46 commercial banks and adopts a two-step system generalized method of moments to inspect the direct and indirect effects of interest rate liberalization (IRL) on banking stability from 2015 to 2021 in China. The results show that IRL enhances banking stability and brings deposit competition among banks, which affects banking stability. Meanwhile, wealth management products (WMPs) with higher market-based yields have increased dramatically as competitive substitution of deposits. The bootstrap test confirms the chained mediation effects of deposit competitiveness and WMPs development on the relationship between IRL and banking stability. Elsevier 2024-04 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/115407/1/115407.pdf Kang, Kuan and Mohd Ashhari, Zariyawati and Yahya, Mohamed Hisham and Soh, Wei Ni and Li, Yue (2024) Interest rate liberalization and the stability of the Chinese banking system: exploring chained mediation effects of deposit competitiveness and wealth management products. Finance Research Letters, 62 (pt. B). art. no. 105222. pp. 1-11. ISSN 1544-6123; eISSN: 1544-6131 https://www.sciencedirect.com/science/article/pii/S1544612324002526?via%3Dihub 10.1016/j.frl.2024.105222 |
| spellingShingle | Kang, Kuan Mohd Ashhari, Zariyawati Yahya, Mohamed Hisham Soh, Wei Ni Li, Yue Interest rate liberalization and the stability of the Chinese banking system: exploring chained mediation effects of deposit competitiveness and wealth management products |
| title | Interest rate liberalization and the stability of the Chinese banking system: exploring chained mediation effects of deposit competitiveness and wealth management products |
| title_full | Interest rate liberalization and the stability of the Chinese banking system: exploring chained mediation effects of deposit competitiveness and wealth management products |
| title_fullStr | Interest rate liberalization and the stability of the Chinese banking system: exploring chained mediation effects of deposit competitiveness and wealth management products |
| title_full_unstemmed | Interest rate liberalization and the stability of the Chinese banking system: exploring chained mediation effects of deposit competitiveness and wealth management products |
| title_short | Interest rate liberalization and the stability of the Chinese banking system: exploring chained mediation effects of deposit competitiveness and wealth management products |
| title_sort | interest rate liberalization and the stability of the chinese banking system: exploring chained mediation effects of deposit competitiveness and wealth management products |
| url | http://psasir.upm.edu.my/id/eprint/115407/ http://psasir.upm.edu.my/id/eprint/115407/ http://psasir.upm.edu.my/id/eprint/115407/ http://psasir.upm.edu.my/id/eprint/115407/1/115407.pdf |