Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298997 
Authors: 
Year of Publication: 
2020
Citation: 
[Journal:] Journal of Central Banking Theory and Practice [ISSN:] 2336-9205 [Volume:] 9 [Issue:] 3 [Year:] 2020 [Pages:] 135-161
Publisher: 
Sciendo, Warsaw
Abstract: 
This paper measures the financial strength of the People's Bank of China from the perspective of balance sheets, and then examine empirically whether its financial strength influences its policy commitments given its financial conditions. The econometric results suggest that, first, the financial strength of the People's Bank of China does affect its policy performance, although the effects are weak and overall results lack robustness with respect to the econometric technique and the choice of alternative measures of financial strength. Second, alternative financial strength indicator plays different role in helping the People's Bank of China achieve its alternative policy objectives. Therefore, maintaining benign financial conditions and a resilient balance sheet are necessary pre-conditions for the People's Bank of China to achieve desirable policy outcomes. Third, the People's Bank of China's current standalone finance is healthy under our stressing tests, despite certain concerns attained.
Subjects: 
Financial Strength
The People's Bank of China
Balance Sheet Analysis
Stress Testing
Policy Performance
JEL: 
E31
E52
E58
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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