The Impact of Local Government Hidden Debt on the Risk of Small and Medium-sized Banks

The Impact of Local Government Hidden Debt on the Risk of Small and Medium-sized Banks | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article The Impact of Local Government Hidden Debt on the Risk of Small and Medium-sized Banks Ruowei Ma, Mengfan Xiong, Xueying Wang, Hui Gao This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8072435/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Against the backdrop of slowing economic growth and increasing fiscal imbalances, the risk linkage between local government hidden debt and the banking system has intensified. City and rural commercial banks, which are highly intertwined with local public finance and regional economies, play a pivotal role in the transmission and absorption of such risks. Understanding the transmission mechanism between hidden government debt and bank risk contributes to the design of more targeted countercyclical and structural regulatory policies, while offering practical insights for improving debt transparency and promoting the stability of small and medium-sized (SME) banks. Local government hidden debt Small and medium-sized banks Interbank business Fiscal–financial linkage Risk transmission Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. 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