Short description of project
The qualitative asset transformation function of banks explains the existence of these financial intermediaries (Bhattacharya and Thakor 1993). The role of risk transformer has been well studied in the past, while the recent studies focus on the role of liquidity creator. Deep and Schaefer (2004) construct the first measurement of liquidity creation. Later, Berger and Bouwman (2009) further investigate the measurement that based on the categories of assets, liabilities, equity, and off-balance sheet issues, and analyze the U.S. bank liquidity creation. This study will investigate the relationship of liquidity creation with bank capital, financial openness, banking reform and bank performance in China. This paper investigates the relationship of liquidity creation with bank capital, financial openness, banking reform and bank performance. We test the “financial fragility-crowding out” hypothesis and the risk absorption hypothesis on Chinese Banks, and conjecture that bank capital is negatively related to the liquidity creation, which supports the “financial fragility-crowding out” hypothesis. This project intends to examine the effect of monetary policies in China such as raising the banks’ capital reserve ratio.
Information of Offered Internship
Level of Internship Hours per Month
Level 3 - 60 hours
Commencement Month
May
Duration
6 Months
Internship requirements: i.e. work, practice and training
Work:
1. Data collection from listed companies annual report
2. Data validation using statistical programs such as STATA
3. Data management and analysis
4. Related literature search and summarize
1. Data collection from listed companies annual report
2. Data validation using statistical programs such as STATA
3. Data management and analysis
4. Related literature search and summarize