We study the impact of China’s 2013 implementation of Basel III on bank risk-taking and its responses to monetary policy shocks using confidential loan-level data from a large Chinese bank. Guided by theory, we use a difference-in-difference identification, exploiting cross-sectional...

We study the impact of China's 2013 implementation of Basel III on bank risk-taking and its responses to monetary policy shocks using confidential loan-level data from a large Chinese bank. Guided by theory, we use a difference-in-difference identification, exploiting cross-sectional differences...

We present evidence that tightened bank capital requirements after China implemented the Basel III capital regulations in 2013 have reduced bank risk-taking following expansionary monetary policy shocks. Under the new regulations, a bank can boost its effective capital adequacy ratio (CAR) by...

This paper builds a banking DSGE model with endogenous loan-to-value ratios which capture complex relationships between banks and firms. Reflecting the relationship between banks and enterprises, the loan-to-value ratio for state-owned enterprises is endogenously greater than that for private...

In 2015, China implemented a debt-to-bond swap program that required local governments to replace outstanding debts with local government bonds, which are considered low-risk assets for commercial banks under Basel III regulations. We study the empirical effects of the debt-swap program on bank...

Using a comprehensive firm-level and a unique confidential loan-level combined dataset, we examine the credit reallocation effects of minimum wage hikes in China. We show that in response to a wage rise shock, firms, especially those that are labor-intensive, are less likely to obtain a loan....