Political Promotion Incentives and Banking Supervision: Evidence from the Cbirc Merger

Political Promotion Incentives and Banking Supervision: Evidence from the Cbirc Merger

Political Promotion Incentives and Banking Supervision: Evidence from the Cbirc Merger

This study investigates how to incentivize financial regulators to prevent regulatory inaction. Using the 2018 China Banking and Insurance Regulatory Commission merger as a quasi-natural experiment, we use a DID model to empirically measure the impact of political promotion incentives on banking supervision.

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