Peer effects in bank liquidity hoarding and its impact on bank risk: Evidence from Chinese commercial banks

IF 6.9 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2025-08-01 DOI:10.1016/j.ribaf.2025.103145

Konglin Ke, Haohao Rui, Dekai Tan

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Abstract

This study investigates whether banks strategically incorporate the liquidity hoarding behaviors of their peers when shaping their own liquidity management strategies, and how these dynamics impact financial stability. Using a dataset of Chinese commercial banks and a comprehensive identification strategy, we find that the liquidity hoarding decisions made by banks are significantly influenced by those of their peers. These correlated decisions are evident across assets, liabilities, and off-balance-sheet activities. The mechanism analysis indicates that peer effects in bank liquidity hoarding are primarily driven by learning behavior and blame avoidance. Under higher economic policy uncertainty and regulatory pressure, peer effects become more pronounced, leading banks to align more closely with their peers' behavior. We further find that, although liquidity hoarding behaviors may reduce risk at the individual bank level, they heighten systemic risk by amplifying shared vulnerabilities across the sector. This underscores the need for macroprudential regulation to address liquidity risk in the banking sector.

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银行流动性囤积的同伴效应及其对银行风险的影响——来自中国商业银行的证据

本研究探讨银行在制定自己的流动性管理策略时，是否会策略性地纳入同业的流动性囤积行为，以及这些动态如何影响金融稳定。利用中国商业银行的数据集和综合识别策略，我们发现银行的流动性囤积决策受到同业决策的显著影响。这些相关的决策在资产、负债和表外活动中都很明显。机制分析表明，银行流动性囤积中的同伴效应主要由学习行为和指责回避驱动。在更高的经济政策不确定性和监管压力下，同行效应变得更加明显，导致银行更密切地与同行的行为保持一致。我们进一步发现，尽管流动性囤积行为可能会降低单个银行层面的风险，但它们会放大整个行业的共同脆弱性，从而加剧系统性风险。这凸显了宏观审慎监管应对银行业流动性风险的必要性。

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

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance