The effect of PBoC's loan prime rate reform in 2019 on the profitability of Chinese banks and corporations

• Main Authors: Kwong, Hui Lin, Lee, Wei Jie, Lim, Yu Li
• Other Authors: Yeow Hwee Chua
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2024
• Subjects: Social Sciences
• Online Access: https://hdl.handle.net/10356/175450
• Institution: Nanyang Technological University

Using data from China, we show how the profitability of Chinese banks and corporations evolved after the Loan Prime Rate (LPR) reform in August 2019. With lending rates falling after the reform, we derived empirical results that the profitability of Chinese banks, measured by its return on assets (R...