Government Intervention in Chinese Rural Commercial Banks–A Helping Hand or a Grabbing Hand?
Document Type
Article
Publication Date
1-1-2021
Department
School of Business
Abstract
We show that government intervention deteriorates the Chinese rural commercial banks’ capital efficiency when fiscal or political pressure is high, an evidence supporting the grabbing-hand view of government. On the other hand, government intervention does not improve bank capital efficiency when the banking market is more competitive, showing no significant helping hands.
DOI
10.1080/13504851.2020.1749760
First Page
249
Last Page
253
Volume
28
Issue
3
ISSN
13504851
Recommended Citation
Wang, W., Hueng, C. J., & Wei, W. (2021). Government intervention in Chinese rural commercial banks – A helping hand or a grabbing hand?. Applied Economics Letters, 28(3): 249-253. DOI: 10.1080/13504851.2020.1749760