Abstract
This paper examines the impact of earthquake risk on the lending behavior of local Chinese banks. The results show that when facing earthquake risk, banks will adjust their lending behavior, including decreasing the amount of loans and mortgage loans and increasing credit loans and loan loss provision, but the effect only exists for banks without inter-provincial branches or that are located in cities with a higher population density. In general, earthquake risk cannot significantly affect the performance of banks, but it can deteriorate the performance of banks that have not adjusted their lending behavior.
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Notes
The website of the database is www.cnrds.com.
The website is https://data.earthquake.cn/index.html.
Since only an earthquake with 3.0 or over can be felt within 100 km from the center, we define Earthquake based on the standard. And we calculate the distance between the earthquakes and banks’ headquarter according their longitude and latitude.
For simplicity, we only regressed on the dependent variables with which Earthquake was significantly correlated.
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Acknowledgements
The authors acknowledge financial support from the National Social Science Foundation of China (19CJY059), the Program of Qilu Young Scholars of Shandong University, and the Taishan Scholar Program of Shandong Province.
Funding
The authors acknowledge financial support from the National Social Science Foundation of China (19CJY059), the Program of Qilu Young Scholars of Shandong University, and the Taishan Scholar Program of Shandong Province. There are no conflicts of interest.
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All authors contributed to the study conception and design. Material preparation, data collection and analysis were performed by Qian Wu and Xianhang Qian. The first draft of the manuscript was written by Yun Liu and all authors commented on previous versions of the manuscript. All authors read and approved the final manuscript.
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Wu, Q., Qian, X. & Liu, Y. The impact of earthquake risk on banks’ lending behavior: evidence from local Chinese banks. Environ Sci Pollut Res 29, 3147–3154 (2022). https://doi.org/10.1007/s11356-021-17617-w
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DOI: https://doi.org/10.1007/s11356-021-17617-w