How Does Geographic Speculative Culture Affect Local Bank Credit Risk?——Annotation of the Impact of Macro-prudential Management and Micro-prudential Regulation
Speculative culture as an informal system can have a significant impact on local bank credit risk.The study finds that a strong speculative culture can cause local banks to face significant information asymmetry and there-fore increase their credit risk.On the one hand,a speculative culture can exacerbate credit risk by prompting local banks to engage in excessive risk-taking and over-accelerating capital turnover.On the other hand,the adverse effects of a speculative culture can be exacerbated by the pressure of narrower net interest margins and increased inter-bank competition.Strengthening micro-prudential regulation can curb the adverse effects of a speculative culture.On the mac-ro-prudential side,tighter loan origination conditions and higher liquidity requirements can help to curb the adverse ef-fects of a speculative culture;simply raising static capital requirements tends to create a'reverse incentive'problem.
万方数据
