Effects of monetary policy and deposit insurance on financial policy: Does ownership structure matter? Evidence from Chinese banks

Journal article

Moudud-Ul-Huq, S., Hossain, M., Rahman, S., Ullah, H., Adesina, O. O. and Rashid, M. 2025. Effects of monetary policy and deposit insurance on financial policy: Does ownership structure matter? Evidence from Chinese banks. Applied Economics. pp. 1-21. https://doi.org/10.1080/00036846.2025.2504204

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Authors	Moudud-Ul-Huq, S., Hossain, M., Rahman, S., Ullah, H., Adesina, O. O. and Rashid, M.
Abstract	This study empirically investigates the influence of monetary policy and deposit insurance on the financial policy of Chinese banks, taking into account the moderating role of ownership structure. The study examines an unbalanced panel of 116 banks encompassing the years 2000 to 2024. Various analytical tools, including the two-step system GMM, quadratic and nonlinear associations, three-stage least squares (3SLS) technique, and alternative measures of financial policy, have been employed to analyze the latest dataset. The findings suggest that monetary policy and deposit insurance significantly influence the financial policy adherence to the ownership structure. The ownership structure of banks has a contingent impact on financial policy. The financial policy is subject to greater influence from commercial and other banks including cooperative or rural banks compared to specialized banks. Additionally, it has been noted that reserve requirements and deposit insurance displays U-shaped relationships with financial policy. The results have imperative implications for banks and regulatory bodies that are managing key financial instruments in the complex financial landscape.
Keywords	Financial policy; Monetory policy; Deposit insurance; Ownership structure ; Financial institutions
Year	2025
Journal	Applied Economics
Journal citation	pp. 1-21
Publisher	Taylor and Francis Online
ISSN	0003-6846
	1466-4283
Digital Object Identifier (DOI)	https://doi.org/10.1080/00036846.2025.2504204
Official URL	https://www.tandfonline.com/doi/full/10.1080/00036846.2025.2504204
Print	15 May 2025
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Deposited	19 May 2025
Accepted author manuscript	File Access Level Restricted
Publisher's version	Effects of monetary policy and deposit insurance on financial policy Does ownership structure matter Evidence from Chinese banks.pdf License CC BY-NC-ND 4.0 File Access Level Open
Output status	Published

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