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Empirical study on the impact of commercial credit on cross-financial risk

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  • Wu, Yonggang
  • Wang, Yanfang
  • Li, Jixin

Abstract

Based on financial data from China's A-share listed firms and cross-financial risk data for 16 commercial banks from the first quarter of 2012 to the fourth quarter of 2023, this paper empirically examines the impact of commercial credit on cross-financial risks and the underlying mechanisms. The results indicate that commercial credit mitigates the transmission of cross-financial risks by reducing banks' risk-taking behavior and expanding the scale of interbank business. Moreover, banking business diversification exerts a negative moderating effect, while the degree of bank competition plays a positive moderating role. These findings provide strong theoretical support for commercial banks in optimizing risk management strategies and for policymakers in designing effective regulatory frameworks, and are of significant importance for maintaining the stable development of the financial system.

Suggested Citation

  • Wu, Yonggang & Wang, Yanfang & Li, Jixin, 2026. "Empirical study on the impact of commercial credit on cross-financial risk," Pacific-Basin Finance Journal, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:pacfin:v:99:y:2026:i:c:s0927538x26002258
    DOI: 10.1016/j.pacfin.2026.103279
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