Post by Economic Modelling

#JustPublished Tax-based information sharing and bank risk: Evidence from China's Bank–Tax Interaction policy #Authors: Lihua Liu (Guangdong University of Foreign Studies) Jiaxi Zhang (Guangdong University of Foreign Studies) Siyi Yao (Guangdong University of Foreign Studies) Yue Chen (Hainan University) #Highlights: • This article examines how tax-based information sharing affects bank risk. • It exploits China's Bank–Tax Interaction (BTI) policy as a quasi-natural experiment. • Banks participating in BTI exhibit significantly lower insolvency risk. • BTI is associated with expanded lending, a shift in loan composition, and lower personal non-performing loans. • The risk-mitigating effect appears more pronounced in state-owned, non-listed as well as banks in lower marketized regions. #PaperLink: https://lnkd.in/eTGzyBQb #Econ #Risk