The Effect of Deposit Reserve Ratio on SMEs’ Loan Cost: Evidence from SMEs Loan-Level Data of a Representative City in China
SONG Quanyun, WU Yu, QIAN Long
Research Institute of Economics and Management, SWUFE; Survey and Research Center for China Household Finance, SWUFE; Nanjing Branch,the People’s Bank of China
Abstract:
Adjustment of deposit reserve ratio will directly cause changes in enterprises’ loan cost, and it may also generates heterogeneous changes in the loan rate of different types of loans. In this paper, by using loan-level data of a representative city in China, we examine the general and heterogeneous effect of deposit reserve ratio adjustment on SMEs’ loan cost. Empirical results show that increasing of deposit reserve ratio significantly increases the cost of SMEs’ bank loans. Further analyses indicate that the adjustment of the deposit reserve ratio (1) has a much larger effect on the cost of loans from joint-stock banks, city commercial bank and rural commercial bank; (2) has a larger impact on the loan cost of small, low credit-rating, and non-state owned enterprises; (3) affects the loan rate of short term, small size, and liquidity loans more. Findings in this paper provide a novelty view on the study of transmission mechanism of the adjustment of deposit reserve ratio, and also empirical evidence on the implementation of monetary policies such as differentiated deposit reserve ratio policy, and directional adjustment of deposit reserve ratio.
宋全云, 吴 雨, 钱 龙. 存款准备金率与中小企业贷款成本——基于某地级市中小企业信贷数据的实证研究[J]. 金融研究, 2016, 436(10): 64-78.
SONG Quanyun, WU Yu, QIAN Long. The Effect of Deposit Reserve Ratio on SMEs’ Loan Cost: Evidence from SMEs Loan-Level Data of a Representative City in China. Journal of Financial Research, 2016, 436(10): 64-78.
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