Deposit Insurance and Bank Liquidity Creation: Evidence from a Natural Experiment in China*
以中国2015年引入存款保险为自然实验，研究发现存款保险增强了资本对流动性创造的正面作用，但削弱了货币政策的影响，且对大银行和小银行影响不同。
Abstract In this paper, we examine how the implementation of deposit insurance influences the impact of bank capital, excess lending, banking competition and monetary policy on liquidity creation of banks. Our examination uses China’s introduction of deposit insurance in 2015 as a natural experiment. We find that deposit insurance positively reinforces the effect of capital but weakens that of monetary policy on liquidity creation. We do not find that deposit insurance has a significant influence on the effects of excess lending and competition on the liquidity creation of banks. We also show that the implementation of deposit insurance has heterogenous effects on the liquidity creation of large and small banks.