Title

Government Intervention in Chinese Rural Commercial Banks–A Helping Hand or a Grabbing Hand?

Authors

Wenli Wang, Xi'an University of Technology
C. James Hueng, Western Michigan University
Wan Wei, Arkansas Tech UniversityFollow

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