The impact of policy uncertainty and risk taking on the credit resource allocation of urban commercial banks
Year: 2024
Type: article
Abstract: This paper investigates the impact of policy uncertainty and risk-taking on the credit resource allocation of urban commercial banks, using data from 30 urban commercial banks over the period 2012–2022 as a sample. The empirical results show that policy uncertainty reduces the allocation of credit resources by urban commercial banks; risk-taking is positively correlated with the allocation of credit resources by urban commercial banks; capital adequacy ratio plays an intermediary role in the relationship between risk-taking and credit resource allocation; the impacts of policy uncertainty and risk-taking on credit resource allocation among urban commercial banks with different equity natures exhibit variabilities. Specifically, policy uncertainty has a more pronounced effect on credit resource allocation in urban commercial banks controlled by local governments, whereas risk-taking exerts a more significant influence on credit resource allocation in those controlled by non-local governments; the impact of risk-taking on the allocation of credit resources by urban commercial banks exhibits a threshold effect, showing different characteristics as the size of the bank changes.
Authors: Jianfeng Yao, Jianfei Fan
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $2,790
OpenAlex ID: W4404813315