Open Access Letter

Analysis of the Mediating Effect of Economic Policy Uncertainty Affecting Commercial Bank Credit

by Juan Meng a,*  and  Zhe Zhou b
a
Business School, Hunan First Normal University, Changsha, China
b
Rady school of management, University of California San Diego, San Diego, USA
*
Author to whom correspondence should be addressed.
FEL  2022, 2; 1(1), 2; https://doi.org/10.58567/fel01010002
Received: 2 November 2022 / Accepted: 18 December 2022 / Published Online: 27 December 2022
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Abstract

We analyze the annual microdata of China's 100 commercial banks from 2007 to 2018 using the mediating effect analysis method, analyze the negative impact of economic policy uncertainty on the credit scale of commercial banks, and then verify the intermediary effects of the operational risks and short-term capital liquidity of commercial banks in the impact of economic policy uncertainty on the scale of commercial bank credit, separately. Moreover, we find that non-state-owned commercial banks, large-scale commercial banks, low-leverage commercial banks, and commercial banks with low profitability are more susceptible to economic policy uncertainty affecting commercial bank credit growth through short-term capital liquidity, and vice versa.

Keywords: Economic policy uncertainty Mediating effect, Credit scale;
Copyright: © 2022 by Meng and Zhou. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Meng, J.; Zhou, Z. Analysis of the Mediating Effect of Economic Policy Uncertainty Affecting Commercial Bank Credit. Financial Economics Letters, 2022, 1, 2. https://doi.org/10.58567/fel01010002
AMA Style
Meng J, Zhou Z. Analysis of the Mediating Effect of Economic Policy Uncertainty Affecting Commercial Bank Credit. Financial Economics Letters; 2022, 1(1):2. https://doi.org/10.58567/fel01010002
Chicago/Turabian Style
Meng, Juan; Zhou, Zhe 2022. "Analysis of the Mediating Effect of Economic Policy Uncertainty Affecting Commercial Bank Credit" Financial Economics Letters 1, no.1:2. https://doi.org/10.58567/fel01010002
APA style
Meng, J., & Zhou, Z. (2022). Analysis of the Mediating Effect of Economic Policy Uncertainty Affecting Commercial Bank Credit. Financial Economics Letters, 1(1), 2. https://doi.org/10.58567/fel01010002

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