Law-Based Business Environment and Commercial Bank Risk——Evidence from Professional Bankruptcy Courts
High quality law-based business environment is the cornerstone to support financial development.This paper examines how the exogenous changes in regional judicial efficiency caused by professional bankruptcy courts affect the risks of commercial banks.This paper uses a regional court data platform to construct a new dataset for the construction of law-based business environment.Research shows that the construction of law-based business environment can reduce bank risks by about 12.19％.Reducing bank management costs is an important mechanism for improving judicial efficiency and reducing commercial bank risks.The inhibitory effect is more pronounced when the legal environment in the region where the bank is located is poor,judicial transparency is low,and local government intervention is strong.It is also found that the improvement of judicial efficiency can encourage commercial banks to optimize their loan structure and increase loan disbursement to enterprises.The research conclusion has important implications for creating a first-class law-based business environment,strengthening the financial stability guarantee system,and promoting high-quality economic development.
law-based business environmentprofessional bankruptcy courtcommercial bank riskbank management cost
NETL
NSTL
万方数据
