Funding innovation and bank systemic risk: Evidence from Wealth Management Products

2026

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AI-generated summary

This paper investigates how Wealth Management Products (WMPs) issued by Chinese banks contribute to systemic risk, offering crucial insights for financial stability and regulatory policy.

* Examines the relationship between WMP issuance and bank systemic risk using a novel dataset of Chinese banks.
* Identifies maturity mismatch and increased funding costs as key transmission channels through which WMPs amplify systemic risk.
* Utilizes a difference-in-differences approach to establish a causal link between WMP reliance and systemic risk, leveraging the 2018 Asset Management Regulation.

Tags: Wealth Management Products, Systemic Risk, Shadow Banking, China, Financial Stability

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