The Impact of Deposit Loan Ratio on Bank Risk and Its Mechanism Analysis——Empirical Research Based on China's Banking Industry
Improving the regulatory policy of deposit to loan ratio is of great significance for preventing bank risks and maintaining financial stability.This article is based on panel data from 67 commercial banks in China from 2010 to 2020,exploring the impact and mechanism of deposit loan ratio on bank risk.The empirical results indicate that the increase in deposit to loan ratio can effectively reduce bank risks,the loan to deposit ratio reduces bank risk through the intermediary effect of capital adequacy ratio,interbank assets,and shadow banking business.When the capital adequacy ratio is the threshold variable,the non-linear effect of the deposit to loan ratio on reducing bank risk is an increasing marginal effect.When interbank assets and shadow banking business are threshold variables,the deposit to loan ratio has a non-linear effect of diminishing marginal effects on reducing bank risk.In view of this,regulatory authorities should strengthen the supervision of the loan to deposit ratio as a liquidity testing indicator,encourage commercial banks to establish a long-term mechanism for capital replenishment,and strengthen risk control over interbank assets and shadow banking business,so as to enhance the effectiveness of financial regulation and maintain the bottom line of preventing financial risks.
NETL
NSTL
万方数据
