IDEAS home Printed from https://ideas.repec.org/a/bla/irvfin/v25y2025i1ne70003.html
   My bibliography  Save this article

Public trust and bank branching regulation on personal loan grants and default risk: Evidence from regional commercial banks in China

Author

Listed:
  • Mohan Fonseka
  • Grant Richardson

Abstract

We examine the effect of public trust on personal loan grants and the default risk of Chinese regional commercial banks during the bank branch regulation regime changes. Using exogenous shocks of bank branch regulation regimes in quasi‐natural experiments, we find that public trust exhibits a more pronounced increase in personal loan grants for regional banks. Additionally, we report a negative relationship between public trust and default risk. Finally, we observe that city commercial banks that open branches in high public trust provinces during the deregulation period lead to an increase (decrease) in personal loan grants and (default risk).

Suggested Citation

  • Mohan Fonseka & Grant Richardson, 2025. "Public trust and bank branching regulation on personal loan grants and default risk: Evidence from regional commercial banks in China," International Review of Finance, International Review of Finance Ltd., vol. 25(1), March.
    • Handle: RePEc:bla:irvfin:v:25:y:2025:i:1:n:e70003
    DOI: 10.1111/irfi.70003
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/irfi.70003
    Download Restriction: no
    File URL: https://libkey.io/10.1111/irfi.70003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:irvfin:v:25:y:2025:i:1:n:e70003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1369-412X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.