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...

In the past decade, the Chinese economy has witnessed a great housing boom, accompanied by a slowdown in economic growth and an increase in firms' financial investment. The waning economic prospects are shown to lead to a surge in housing prices by stimulating firms' demand for financial...

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...