Year-end Sale % OFF 
Abstract
We find that Chinese regional state-owned City-Commercial Banks (CCBs) landlocked by their remit to operate within a city, respond to natural disasters more effectively by aggressively expanding credit, especially to corporate borrowers. The credit expansion is robust to a difference-in-differences specification and is unobservable among non-CCBs in the same city. Moreover, the expansion is more pronounced in CCBs with high state ownership and those that are private. Despite the additional CCB lending, we do not find a drop in asset quality, and using satellite-based city night lights, we find post-disaster cities that experience greater CCB credit expansion enjoy stronger economic recoveries. Overall, our findings highlight the critical role played by regional state-owned lenders in economic recovery from increasingly frequent natural disasters.
Published Version
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.
