To give is to take: The effects of government deposits on bank risks

IF 5.6 2区经济学 Q1 BUSINESS, FINANCE

International Review of Economics & Finance Pub Date : 2025-09-23 DOI:10.1016/j.iref.2025.104644

Xuanxuan Zhang , Jiefei Yang , Zhenzhen Li , Zili Zhang

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Abstract

As government and financial sector funds become increasingly intertwined, managing the influence of government deposits on the financial system has become an important way for preventing the escalation of bank risks. Using data of China's city commercial banks from 2009 to 2017, we provide the first empirical test of the risk effects of government deposits and their transmission channels by employing a fixed-effects model and an instrumental variable approach. Our findings reveal that government deposits exert discernible credit allocation effects that exacerbate banks' risks. Specifically, the risk exacerbation effects are shaped by credit expansion, policy-orientated loan, and credit term structure. By using a panel threshold model, we find that the impact of government deposits on bank risks exhibits clear threshold effects depending on banks' equity assets and market environment. Furthermore, government deposits also influence banks' revenue, and are impacted by the pace of government expenditure. Our paper sheds new light on the relationship between government and financial system in a broader context.

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给予即接受：政府存款对银行风险的影响

随着政府和金融部门的资金日益交织，管理政府存款对金融体系的影响已成为防止银行风险升级的重要途径。本文利用2009 - 2017年中国城市商业银行的数据，采用固定效应模型和工具变量方法，首次对政府存款及其传导渠道的风险效应进行了实证检验。我们的研究结果表明，政府存款具有明显的信贷配置效应，加剧了银行的风险。具体而言，信贷扩张、政策性贷款和信贷期限结构形成了风险加剧效应。通过面板阈值模型，我们发现政府存款对银行风险的影响表现出明显的阈值效应，这取决于银行的股权资产和市场环境。此外，政府存款也影响银行的收入，并受到政府支出速度的影响。我们的论文在更广泛的背景下揭示了政府与金融体系之间的关系。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Review of Economics & Finance Multiple-

CiteScore

7.30

自引率

2.20%

发文量

253

期刊介绍： The International Review of Economics & Finance (IREF) is a scholarly journal devoted to the publication of high quality theoretical and empirical articles in all areas of international economics, macroeconomics and financial economics. Contributions that facilitate the communications between the real and the financial sectors of the economy are of particular interest.