With the occurrence of international events such as the US election, the
Brexit, the Middle East civil war and the intensification of the Sino-US trade
war, the global politics and economy will be on the road of deepening
adjustment, and the political and economic uncertainty around the world will
continue to increase. Faced with an increasingly complex and volatile economic
situation and policy environment, China’s economic policy uncertainty is also
increasing. Based on unbalanced panel data of 142 commercial banks in China
from 2007 to 2016, the paper uses GMM model to examine the impact of economic
policy uncertainty on bank credit. The empirical result shows that the increase
in uncertainty will lead to conservative banking behavior and suppress the
scale of bank credit. At the same time, this uncertainty will have a greater
impact on non-state banks and non-listed banks.
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