Government Intervention in Chinese Rural Commercial Banks–A Helping Hand or a Grabbing Hand?
School of Business
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.
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