Shadow Banking and Interest Rate Liberalisation
——Evidence from Wealth Management Products and Interbank CDs in China
Department of Finance 2017-12-15
Shadow Banking and Interest Rate Liberalization: Evidence from Wealth Management Products and Interbank CDs in China
Speaker: Huang Ji, Assistant Professor of Economics, Department of Economics, National University of Singapore
Host: Dong Feng, Assistant Professor from Department of Finance, ACEM
Time: Dec 18, 2017, Monday, 14:30-16:00
Venue: S204 Xinshangyuan Building
Banks bear risks that originate from their shadow banking businesses. To quantify banks' risk exposure to their shadow banking activities, we compile a comprehensive product-level data on one of China's major shadow banking sectors, the wealth management product (WMP) sector, and link it to interbank CD data. In this paper, we have three main findings: 1) small and medium-sized banks assume more risks from their WMPs than large banks do; 2) banks bear more risks from their institutional WMP than from retail ones; 3) the introduction of the interbank CD market increases risks that small and medium-sized banks bear from their non-interbank WMPs.
Huang Ji is an Assistant Professor of Economics at the Department of Economics, National University of Singapore. His main research interests are macro-finance, banking, and shadow banking. He holds a PhD and a MA in Economics from Princeton University in New Jersey, United States.
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