We use BERT, an AI-based algorithm for language understanding, to decipher regulatory climate-risk disclosures and measure their impact on the credit default swap (CDS) market. Risk disclosures can either increase or decrease credit spreads, depending on whether disclosure reveals new risks or...

Non-performing loans(NPLs) of commercial banks hamper the development of Chinese banking sector for long. The state-owned shareholdings representing the willingness of government intervention are taken as the driven factor for the high NPL ratio of commercial banks. In the process of deepening...