The Effects of DRRR Policy on Large versus S&M Sized Banks in China
This paper employs cointegration test to measure the effects of Differentiated Reserve Requirement Ratio (DRRR) policy on large banks versus Small and Medium (S&M) sized banks from 2009M01 to 2013M10. The results confirm the hypothesis that this DRRR policy promotes the economy growth more in th...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
EDP Sciences
2020-01-01
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| Series: | SHS Web of Conferences |
| Online Access: | https://www.shs-conferences.org/articles/shsconf/pdf/2020/14/shsconf_icore2020_01007.pdf |
| Summary: | This paper employs cointegration test to measure the effects of Differentiated Reserve Requirement Ratio (DRRR) policy on large banks versus Small and Medium (S&M) sized banks from 2009M01 to 2013M10. The results confirm the hypothesis that this DRRR policy promotes the economy growth more in the earthquake-stricken counties and a lower DRRR to some extent alleviate the tightening effects of RRR on the S&M sized banks. Due to the big regional disparity, the PBC can consider expand the use of this DRRR policy to more less developed regions to make a more coordinated regional economic development in China. |
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| ISSN: | 2261-2424 |