Series: IMF Working Papers
Author(s): Yu Shi , Robert Townsend , and Wu Zhu
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 21 May 2019
Keywords: Interest rate ceilings, Supply and demand, Credit demand, Credit, Bank credit, Internal capital markets, business groups, bank lending, China, corporate shareholder
Using business registry data from China, we show that internal capital markets in business groups can propagate corporate shareholders' credit supply shocks to their subsidiaries. An average of 16.7% local bank cre...