Abstract
This paper utilizes the quasi-natural experiment of the "Shanghai-Shenzhen-Hong Kong Stock Connect" to examine the impact of capital market openness on bank credit risk. A multi-period difference-in-difference model is employed to explore the effects and underlying mechanisms based on data from 2007 to 2022. The findings indicate that capital market openness leads to a notable rise in the banks' credit risk, mainly due to the substantial enhancement in liquidity. Furthermore, the impact of capital market openness is more pronounced on banks with greater market strength and a higher level of digital transformation, resulting in a more substantial positive effect.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
