JOURNAL ARTICLE

Public trust and bank branching regulation on personal loan grants and default risk: Evidence from regional commercial banks in China.

  • Published In: International Review of Finance, 2025, v. 25, n. 1. P. 1 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Fonseka, Mohan; Richardson, Grant 3 of 3

Abstract

We examine the effect of public trust on personal loan grants and the default risk of Chinese regional commercial banks during the bank branch regulation regime changes. Using exogenous shocks of bank branch regulation regimes in quasi‐natural experiments, we find that public trust exhibits a more pronounced increase in personal loan grants for regional banks. Additionally, we report a negative relationship between public trust and default risk. Finally, we observe that city commercial banks that open branches in high public trust provinces during the deregulation period lead to an increase (decrease) in personal loan grants and (default risk). [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:International Review of Finance. 2025/03, Vol. 25, Issue 1, p1
  • Document Type:Article
  • Subject Area:Agriculture and Agribusiness
  • Publication Date:2025
  • ISSN:1369-412X
  • DOI:10.1111/irfi.70003
  • Accession Number:183981903
  • Copyright Statement:Copyright of International Review of Finance is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Looking to go deeper into this topic? Look for more articles on EBSCOhost.