Income Distribution Gap and Accumulation of Bank Credit Risk:Based on the Perspective of Corporate Sector leverage
Do improving income distribution and promoting shared prosperity contribute to preventing and resolving financial risks?Based on a corporate leverage perspective,constructing an RBC(Real Business cycle)model incorporating household heterogeneity,corporate debt default,and bank bankruptcy characteristics,we examine the impact of income distribution gaps on bank credit risk.The theoretical model predicts that widening income distribution gaps will increase corporate leverage,thereby raising the cumulative credit risk for banks.The mechanism lies in the widening income distribution gaps leading to a decline in the consumption-investment ratio,creating conditions for increased leverage in the corporate sector.However,the reverse changes in consumption rates and leverage result in reduced actual corporate profitability and increased default risk,thus expanding the credit risk exposure for bank loans.Empirical analysis based on Chinese banking data provides evidence and microfoundations for the theoretical deduction mentioned above,further revealing regional disparities in the impact of income distribution gaps.These con-clusions imply that the goal of shared prosperity is consistent with the objective of safe-guarding against systemic risks,demonstrating internal coherence between these two sig-nificant objectives.
Income Distribution GapBank Credit RiskLeverage of The Enterprise Sec-torCommon ProsperityForestall Systemic Risk
NETL
NSTL
万方数据
