Academic Journal
Implicit guarantees and the rise of shadow banking: The case of trust products
| العنوان: | Implicit guarantees and the rise of shadow banking: The case of trust products |
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| المؤلفون: | Allen, Franklin, Gu, Xian, Li, C. Wei, |
| المصدر: | Journal of Financial Economics, 2023, Vol.149(2), pp.115-141 [Peer Reviewed Journal] |
| بيانات النشر: | Elsevier |
| سنة النشر: | 2023 |
| المجموعة: | Durham University: Durham Research Online |
| الوصف: | Implicit guarantees provided by financial intermediaries are a key component of China's shadow banking sector. We show theoretically that project screening by intermediaries, accompanied by their implicit guarantees to investors, can be the second-best arrangement and mitigate capital misallocation that favors state-owned enterprises (SOEs). Using a dataset of trusts’ investment products, we find, consistent with our model, that ex ante expected yields reflect borrower risks and implicit guarantee strength, and risk sensitivity is reduced by strong guarantees. Regulations in 2018 restricting implicit guarantees lead to a weaker relationship between yield spread and guarantee strength, and more credit rationing of non-SOEs. |
| نوع الوثيقة: | article in journal/newspaper |
| وصف الملف: | application/pdf |
| اللغة: | unknown |
| تدمد: | 0304-405X 1879-2774 |
| Relation: | dro:38389; http://dro.dur.ac.uk/38389/; https://doi.org/10.1016/j.jfineco.2023.04.012; http://dro.dur.ac.uk/38389/1/38389.pdf; http://dro.dur.ac.uk/38389/2/38389VoR.pdf |
| DOI: | 10.1016/j.jfineco.2023.04.012 |
| الاتاحة: | http://dro.dur.ac.uk/38389/ http://dro.dur.ac.uk/38389/1/38389.pdf http://dro.dur.ac.uk/38389/2/38389VoR.pdf https://doi.org/10.1016/j.jfineco.2023.04.012 |
| Rights: | © 2023 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/) |
| رقم الانضمام: | edsbas.24B31B81 |
| قاعدة البيانات: | BASE |
| تدمد: | 0304405X 18792774 |
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| DOI: | 10.1016/j.jfineco.2023.04.012 |