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Capital Requirement And Loan Suppliers Of The Regional Banks In China

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  • DAI JIANZHONG

    (School of Business, Nanjing University, Nanjing, Jiangsu, China)

Abstract

This paper tries to check whether capital requirement policy has significant influence on bank loan growth by using a sample of regional banks in China from 2005–2008. The paper develops a simultaneous equation models to analyze the endogenous relationship between capital changes, loan growth and non-performing loans. The paper finds that during the sample years, capital condition indeed became a strict constraint for the loan growth of these banks This constraint also became more and more strict and significant across the sample years as the implementation of the policy carried on.

Suggested Citation

  • Dai Jianzhong, 2017. "Capital Requirement And Loan Suppliers Of The Regional Banks In China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(04), pages 837-858, September.
    • Handle: RePEc:wsi:serxxx:v:62:y:2017:i:04:n:s021759081740029x
    DOI: 10.1142/S021759081740029X
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    References listed on IDEAS

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