Based on the exogenous shock of the bank lending interest rate ceiling deregulation in China, this paper uses a … interest rate ceiling deregulation. Cross-sectional heterogeneity tests show that the impact of the deregulation on … deregulation enables high-risk firms to increase borrowing through classification shifting. We use the unique setting of China …

Through the interest rate deregulation and banks' off-balance-sheet activities (OBSAs) in Hong Kong, this study … investigates the debate over the impact of banking deregulation on banks' risk-taking behaviour. On one hand, the Arrow effect … implies that increased competition caused by the interest rate deregulation motivates Hong Kong banks to speed up their …