Table 7

Definition of all variables

Variable 
Variables related to collateral monetary policy
CODCRMonetary base injected by collateral monetary policy/Total monetary base
MLFRMonetary base injected by MLF/Total monetary base
nonMLFRCODCR-MLFR
Shadow banking system variables
SBRThe money created by shadow banking system/M2
Variables related to bank risk variables
Bank riskThe spread of NCDs: the NCD yield - the treasury yield
For investigating the driving role of shadow banking
Treasury_yieldthe 1-year treasury yield
dM1_M2the difference of M1 growth and M2 growth
TreasuryIssueRthe ratio of new issued treasury to total monetary base
FERthe ratio of foreign exchange to total monetary base
gM2The M2 growth
CPIConsumer Price Index
NIMThe net interest margins of the banking system
GREI 
lnFEThe log value of foreign exchange reserve
gTradeThe growth of import and export trade
exchangerateThe USD/RMB exchange rate
dr0077-day depository repurchase rate
giavThe Cumulative Year-on-Year Growth of Real Estate Development Investment in China
lnstockfinThe log value of finance from stock market
For investigating the role of CMP and shadow banking in bank risk
lnTAThe log value of bank asset size
profitThe return of asset
CARCapital adequacy ratio
RWARRisk-weighted asset ratio
LDRLoan/deposit
LEVEquity/asset
NPLNon-performing loan ratio
shareholderratioThe large shareholder’s shareholding ratio
boardThe board size
iboardThe idependent board ratio
provisioncoverageNPL Provisioning Coverage Ratio
EPU1Economic policy uncertainty in China
CPIEGCumulative Year-over-Year Growth of Total Profits of Industrial Enterprises Above Designated Size in China
a_hs300returnThe return of hs300 stock index
dr0077-day depository repurchase rate
gM2The growth of M2

Source(s): The table is created by authors

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