An Empirical Study on the Effect of the Differentiated Deposit Reserve Policy---Based on the comparative analysis of large and small commercial banks’ liquidity
Abstract:To evaluate the effect of the differentiated deposit reserve policy, based on the Difference in Differences model, this paper empirically analyzes the difference of changes in current ratio between large and small banks due to the raise of the deposit reserve ratio. The main conclusions drawn are as follows: the deposit reserve policy has a significant impact on the liquidity levels of commercial banks in China. Since the differentiated policy implementation, small-scale banks exceed large-scale banks in the i… Show more
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