Effects of the Interest Rate and Reserve Requirement Ratio on Bank Risk in China: A Panel Smooth Transition Regression Approach
This paper applies the Panel Smooth Transition Regression (PSTR) model to simulate the effects of the interest rate and reserve requirement ratio on bank risk in China. The results reveal the nonlinearity embedded in the interest rate, reserve requirement ratio, and bank risk nexus. Both the interes...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2015-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2015/571384 |
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| _version_ | 1850106042477707264 |
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| author | Zhongyuan Geng Xue Zhai |
| author_facet | Zhongyuan Geng Xue Zhai |
| author_sort | Zhongyuan Geng |
| collection | DOAJ |
| description | This paper applies the Panel Smooth Transition Regression (PSTR) model to simulate the effects of the interest rate and reserve requirement ratio on bank risk in China. The results reveal the nonlinearity embedded in the interest rate, reserve requirement ratio, and bank risk nexus. Both the interest rate and reserve requirement ratio exert a positive impact on bank risk for the low regime and a negative impact for the high regime. The interest rate performs a significant effect while the reserve requirement ratio shows an insignificant effect on bank risk on a statistical basis for both the high and low regimes. |
| format | Article |
| id | doaj-art-30de6e96b81a4ffa9e044e13324da9ad |
| institution | OA Journals |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2015-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-30de6e96b81a4ffa9e044e13324da9ad2025-08-20T02:38:55ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2015-01-01201510.1155/2015/571384571384Effects of the Interest Rate and Reserve Requirement Ratio on Bank Risk in China: A Panel Smooth Transition Regression ApproachZhongyuan Geng0Xue Zhai1School of Finance, Zhejiang University of Finance and Economics, Hangzhou 310018, ChinaThe Global Banking and Markets, Hongkong and Shanghai Banking Corporation Limited, Hong KongThis paper applies the Panel Smooth Transition Regression (PSTR) model to simulate the effects of the interest rate and reserve requirement ratio on bank risk in China. The results reveal the nonlinearity embedded in the interest rate, reserve requirement ratio, and bank risk nexus. Both the interest rate and reserve requirement ratio exert a positive impact on bank risk for the low regime and a negative impact for the high regime. The interest rate performs a significant effect while the reserve requirement ratio shows an insignificant effect on bank risk on a statistical basis for both the high and low regimes.http://dx.doi.org/10.1155/2015/571384 |
| spellingShingle | Zhongyuan Geng Xue Zhai Effects of the Interest Rate and Reserve Requirement Ratio on Bank Risk in China: A Panel Smooth Transition Regression Approach Discrete Dynamics in Nature and Society |
| title | Effects of the Interest Rate and Reserve Requirement Ratio on Bank Risk in China: A Panel Smooth Transition Regression Approach |
| title_full | Effects of the Interest Rate and Reserve Requirement Ratio on Bank Risk in China: A Panel Smooth Transition Regression Approach |
| title_fullStr | Effects of the Interest Rate and Reserve Requirement Ratio on Bank Risk in China: A Panel Smooth Transition Regression Approach |
| title_full_unstemmed | Effects of the Interest Rate and Reserve Requirement Ratio on Bank Risk in China: A Panel Smooth Transition Regression Approach |
| title_short | Effects of the Interest Rate and Reserve Requirement Ratio on Bank Risk in China: A Panel Smooth Transition Regression Approach |
| title_sort | effects of the interest rate and reserve requirement ratio on bank risk in china a panel smooth transition regression approach |
| url | http://dx.doi.org/10.1155/2015/571384 |
| work_keys_str_mv | AT zhongyuangeng effectsoftheinterestrateandreserverequirementratioonbankriskinchinaapanelsmoothtransitionregressionapproach AT xuezhai effectsoftheinterestrateandreserverequirementratioonbankriskinchinaapanelsmoothtransitionregressionapproach |