Non-Financial Enterprises’ Shadow Banking Business and Total Factor Productivity of Enterprises

Yang, Chen; Shen, Weitao

doi:10.3390/su14138150

Cited by 5 publications

(3 citation statements)

References 41 publications

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“…Gen (2020) argued that because financial intermediaries are arguably an artifact of information asymmetry, financial intermediation provided a mechanism for information transmission that could reduce the degree of information asymmetry and, consequently, increase market efficiency. Yang and Shen (2022) empirically analyzed the impact of the shadow banking business (SBB) of non-financial enterprises (non-FEs) on the total factor productivity (TFP) of enterprises and recognized that alleviating financing constraints, reducing information asymmetry, and optimizing financial resource allocation might mitigate the negative effect. studied the crucial role of small and medium-sized enterprises in sustaining economic development in both developed and developing economies and found that under incomplete information, the transactions between SMEs and suppliers could serve as signals for banks, which might help banks access the private information of SMEs, thus reducing information asymmetry among them.…”

Section: Literature Review Information Asymmetrymentioning

confidence: 99%

Examining the Role of Government Intervention in Market Failure and Government Failure

2022

JABE

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This study investigated the role of government intervention in market failure and government failure during the card debt crisis in Taiwan. To achieve this goal, data related to information asymmetry was collected and combined with adverse selection and moral hazard data to confirm if market failure existed. Based on the confirmation of market failure, the study examined if government interventions could improve the market failure or, conversely, lead to government failure. Through constructing the research model and testing the research hypotheses related to market failure and government failure, the results showed that government interventions were essential to solve the card debt crisis under information asymmetry or market failure. The conclusions also implied that policymakers needed to employ resilient responses to improve the crisis in time, but never fell into the controversies of liberalism or protectionism.

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Section: Literature Review Information Asymmetrymentioning

confidence: 99%

Examining the Role of Government Intervention in Market Failure and Government Failure

2022

JABE

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“…Second, we provide novel insights into the existing body of literature on shadow banking, particularly in relation to its systemic risk and sustainability implications. Numerous existing studies have focused on the impact of shadow banking on financial system sustainability, including its activities, magnitude, change in characteristics, risk-taking behavior, and regulatory circumvention [32][33][34][35]. However, we use the dynamic complex network method to provide a new analytical framework, and deeply study the evolution process and propagation mechanism of systemic risks arising from shadow banking in China's banking market.…”

Section: Introductionmentioning

confidence: 99%

Systemic Risk Arising from Shadow Banking and Sustainable Development: A Study of Wealth Management Products in China

Pan,

Fan

2024

Sustainability

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Shadow banking is a main way for the financial market to serve the real economy today, and this process is closely related to systemic risk. This study examines the impact of shadow banking associated with sustainable development in China’s banking on systemic risk. We analyze the data obtained from a rich sample of 31 listed commercial banks in China and shadow banking represented by wealth management products (WMPs) by constructing a dynamic complex interbank network model. The results show that the risks and vulnerabilities generated by shadow banking spread out through the interbank network and cause systemic risk to increase. The effect operates through increasing the number of default banks, reducing banks’ survival rate and profit, and forcing central bank bailout funds expansion. However, it has a positive impact in terms of augmenting liquidity and enhancing investment opportunities. Furthermore, the variability in the influence of different categories of shadow banking is assessed, emphasizing that short-term shadow banking exerts a more pronounced impact on systemic risk. In addition, the heterogeneity of the shadow banking effect on different types of commercial banks is explored, revealing that local and rural commercial banks experience a more conspicuous effect compared to state-owned and joint-stock banks. Our findings highlight that improving external supervision, promoting financial internal governance, and constraining credit linkages are vital for alleviating the increase in risks in shadow banking and maintaining the sustainable development of banking.

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“…Therefore, the performance of banks and the current situation of their assets and liabilities are examined using different models. Numerous studies have been conducted to optimize the basic items of banks' balance sheets, all of which have been able to achieve reasonable results by considering the same objective function, i.e., maximizing the bank's profit or maximizing the difference between the bank's revenue and cost [92][93][94][95][96][97][98][99][100].…”

Section: Introductionmentioning

confidence: 99%

Optimization of Asset and Liability Management of Banks with Minimum Possible Changes

et al. 2023

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Asset-Liability Management (ALM) of banks is defined as simultaneous planning of all bank assets and liabilities under different conditions and its purpose is to maximize profits and minimize the risks in banks by optimizing the parameters in the balance sheet. Most of the studies `and proposed models in the ALM field are based on an objective function that maximizes bank profit. It is not easy to apply changes in these models in order to reach the optimal values of the parameters in the balance sheet. In this article, an attempt has been made to propose a linear model using constraints to achieve optimal values of balance sheet parameters using ALM objectives and considering balance sheet, system and regulatory constraints. It has also been tried to design the model according to the most possible mode and with the least changes and to minimize the size of the balance sheet. The analysis of the model presented in this article has been conducted using the parameters of the balance sheet and income statement of one of the famous Iranian banks. The results obtained from the proposed model show that the values of cash and receivables from banks and other credit institutions have decreased by 30% and increased by 200%, respectively, compared to the actual values of these parameters. Also, Total Income, Operating Income and Non-Operating Income have grown by 30% compared to the actual values of these parameters. Also, the values of a number of parameters are estimated to be zero after optimization. According to the results, it is obvious that the performance of bank managers, especially in the management of bank assets, is significantly different from the optimal values of the balance sheet, and the results obtained from the proposed model can help the management of banks as much as possible.

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Non-Financial Enterprises’ Shadow Banking Business and Total Factor Productivity of Enterprises

Cited by 5 publications

References 41 publications

Examining the Role of Government Intervention in Market Failure and Government Failure

Examining the Role of Government Intervention in Market Failure and Government Failure

Systemic Risk Arising from Shadow Banking and Sustainable Development: A Study of Wealth Management Products in China

Optimization of Asset and Liability Management of Banks with Minimum Possible Changes

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