IDEAS home Printed from https://ideas.repec.org/a/eee/ememar/v66y2025ics1566014125000378.html
   My bibliography  Save this article

Targeted monetary policy and household business credit access: Based on the credit asset pledge relending policy

Author

Listed:
  • Zhang, Mingxin
  • Lin, Min
  • Sun, Yanmei
  • Wu, Weixing

Abstract

This paper reveals the impact of targeted monetary policy on household business credit access, emphasizing its implications on entities not explicitly targeted by the policy. The primary goal of the Credit Asset Pledge Relending Policy lies in motivating financial institutions to extend credit to the agricultural sector and small enterprises. However, stringent relending regulations often render loans extended to entities with insufficient financial information ineligible as collateral for further relending. By utilizing data from the China Household Finance Survey, we demonstrate that the Credit Asset Pledge Relending Policy, which is supposed to inject additional liquidity into the market, paradoxically results in a notable reduction in household commercial loans. Based on our heterogeneity analysis, regions with limited capital liquidity and heightened bank competition witness more significant effects on household business loans. Finally, households with an increased aversion to risk or lower financial literacy encounter greater financing constraints in accessing business credit.

Suggested Citation

  • Zhang, Mingxin & Lin, Min & Sun, Yanmei & Wu, Weixing, 2025. "Targeted monetary policy and household business credit access: Based on the credit asset pledge relending policy," Emerging Markets Review, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:ememar:v:66:y:2025:i:c:s1566014125000378
    DOI: 10.1016/j.ememar.2025.101288
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1566014125000378
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ememar.2025.101288?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Monetary policy; Credit asset pledge relending policy; Household business credit access; Small and medium-sized enterprises; Targeted refinancing policy; Bank credit channel;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ememar:v:66:y:2025:i:c:s1566014125000378. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620356 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.