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Analysis of the Mediating Effect of Economic Policy Uncertainty Affecting Commercial Bank Credit

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  • Juan Meng

    (Business School, Hunan First Normal University, Changsha, China)

  • Zhe Zhou

    (Rady school of management, University of California San Diego, San Diego, USA)

Abstract

We analyze the annual microdata of China's 100 commercial banks from 2007 to 2018 using the mediating effect analysis method, analyze the negative impact of economic policy uncertainty on the credit scale of commercial banks, and then verify the intermediary effects of the operational risks and short-term capital liquidity of commercial banks in the impact of economic policy uncertainty on the scale of commercial bank credit, separately. Moreover, we find that non-state-owned commercial banks, large-scale commercial banks, low-leverage commercial banks, and commercial banks with low profitability are more susceptible to economic policy uncertainty affecting commercial bank credit growth through short-term capital liquidity, and vice versa.

Suggested Citation

  • Juan Meng & Zhe Zhou, 2022. "Analysis of the Mediating Effect of Economic Policy Uncertainty Affecting Commercial Bank Credit," Financial Economics Letters, Anser Press, vol. 1(1), pages 13-20, December.
    • Handle: RePEc:bba:j00007:v:1:y:2022:i:1:p:13-20:d:124
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    References listed on IDEAS

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    1. Scott R. Baker & Nicholas Bloom & Steven J. Davis, 2012. "Has Economic Policy Uncertainty Hampered the Recovery?," Book Chapters, in: Lee E. Ohanian & John B. Taylor & Ian J. Wright (ed.), Government Policies and the Delayed Economic Recovery, chapter 3, Hoover Institution, Stanford University.
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    Cited by:

    1. Song, Meizhe & Liao, Yuling & Liu, Jianghao, 2025. "How terrain complexity affects the equalization of regional basic public services: A fiscal decentralization perspective," Finance Research Letters, Elsevier, vol. 86(PA).

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