Bank Runs in China: Evidence from a Dynamic Panel Model. Issue 1 (June 2018)

• Record Type: Journal Article
• Authors: Liu, Xuefang; Alexander, W. Robert J.; Anwar, Sajid
• Is Part Of: Arthaniti. Volume 17:Issue 1(2018)
• Page Start: 15
• Page End: 30
• Publication Date: 2018-06
• Subjects: China -- bank runs -- bank fundamentals -- macroeconomic factors -- Arellano–Bond model; Economics -- Periodicals; 330
• DOI: 10.1177/0976747918773128
• Languages: English
• ISSNs: 0976-7479

Abstract

The rise of China as a global economic power has caused concern that a crisis in Chinese banking could lead to a worldwide downturn similar to the Global Financial Crisis. Early warning indicators, such as the credit-to-GDP gap and the debt service ratio, are worrying. It is, therefore, worthwhile to study the key factors affecting bank deposits in China. We estimate a dynamic panel model applied to a panel of 63 Chinese banks and find that bank-specific fundamentals, as opposed to macroeconomic factors, are the main drivers of changes in bank deposits. JEL: E44, G21, G28