Financial Flexibility,Inter-bank Liabilities and Bank Liquidity Creation
This paper empirically analyzes the impact of financial flexibility on bank liquidity creation and its transmission mecha-nism based on micro-panel data from 230 Chinese commercial banks.It further examines the moderating effect of cross-border capi-tal flows.The study reveals that financial flexibility has a suppressing effect on bank liquidity creation.Compared to the debt flexibil-ity dimension,the cash flexibility dimension exerts a more pronounced suppressive effect on liquidity creation.Financial flexibility has a stronger inhibitory impact on liquidity creation in state-owned and non-listed banks compared to joint-stock banks,city com-mercial banks,rural commercial banks,and listed banks.Financial flexibility mainly suppresses bank liquidity creation by reducing the scale of interbank liabilities,making the"financial flexibility-interbank liabilities-bank liquidity creation"transmission chan-nel effective.The intensity of cross-border capital flows amplifies the suppressive effect of financial flexibility on bank liquidity cre-ation,with this positive moderating effect primarily observed in cross-border indirect capital flows,while the effect from cross-bor-der direct capital flows is less evident.
Financial FlexibilityBank Liquidity CreationInter-bank LiabilitiesCross-border Capital FlowsCash Flexibility
万方数据
维普
