We show that stricter bank liquidity standards can trigger unintended credit booms when there is heterogeneity in … interbank pricing power. Attempts to circumvent the regulation change the allocation of savings across institutions, eliciting … strategic responses that also change the allocation of lending across markets. More credit is generated per unit of savings in …

the lender's borrowers receive higher credit limits from other banks relative to other non-bank borrowers. This result is … mediated by individuals whose predicted probability of bank default drops as a result of the change to banks' information set … natural experiment whereby a non-bank lender's portfolio was sold to a bank. Because of this transaction, the lender …

shadow banking on bank profitability using a sample of 100 Chinese commercial banks over 2003-2013 with 417 and 395 … (i.e. deposit market, loan market and non-interest income markets) in China and further evaluate their impacts on bank … the profitability of Chinese commercial banks. Finally, the results suggest that shadow banking improves the profitability …