Does higher policy uncertainty lead to higher financial risk for sure? This study shows an opposite evidence. Based on the sample of 16 listed banks from 2011 to 2020 in China, we find that economic policy uncertainty has a significantly large negative impact on the bank systemic risk, and the...

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 examines the impact of financial market development, financial crises and deposit insurance on bank risk based on macro data of 86 countries during the period 1998-2014. The results show that banking sector development and stock market development have opposing effects on bank risk...