Implicit guarantees and the rise of shadow banking: The case of trust products

• 成果类型: Article
• 署名作者: Allen, Franklin; Gu, Xian; Li, C. Wei; Qian, Jun Q. J.; Qian, Yiming
• 署名单位: Imperial College London; Durham University; University of Iowa; Fudan University; University of Connecticut
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2023.04.012
• 发表日期: 2023
• 页码: 115-141
• 关键词: Shadow banking; Trust products; Implicit guarantee; yield; Real estate; SOE

摘要

Implicit guarantees provided by financial intermediaries are a key component of China's shadow banking sector. We show theoretically that project screening by intermediaries, accompanied by their implicit guarantees to investors, can be the second-best arrange-ment and mitigate capital misallocation that favors state-owned enterprises (SOEs). Using a dataset of trusts' investment products, we find, consistent with our model, that ex ante expected yields reflect borrower risks and implicit guarantee strength, and risk sensitivity is reduced by strong guarantees. Regulations in 2018 restricting implicit guarantees lead to a weaker relationship between yield spread and guarantee strength, and more credit rationing of non-SOEs.(c) 2023 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license ( http://creativecommons.org/licenses/by/4.0/ )