Deposit-Lending Synergies: Evidence from Chinese Students at US Universities

58 Pages Posted: 9 Nov 2018 Last revised: 12 Nov 2018

See all articles by Jun Yang

Jun Yang

University of Notre Dame

Date Written: November 7, 2018

Abstract

This paper exploits an influx of Chinese students to US universities from 2000 through 2014 to study information synergies between banks’ deposit-taking and lending activities. Banks that are more recognizable by Chinese students experience higher deposit inflows and increase their local credit supply. This credit supply expansion only occurs in information sensitive credit markets: small business loans and second lien mortgages. Such increase is also more prominent at locations where managers have greater autonomy. The results support the notion of information synergies between deposits and loans: banks gain information contained in deposit inflows, and utilize it in information-intensive lending markets.

Keywords: Banking, Small Business Loans, Mortgages, Information Synergies

JEL Classification: G21

Suggested Citation

Yang, Jun, Deposit-Lending Synergies: Evidence from Chinese Students at US Universities (November 7, 2018). Available at SSRN: https://ssrn.com/abstract=3281397 or http://dx.doi.org/10.2139/ssrn.3281397

Jun Yang (Contact Author)

University of Notre Dame ( email )

Notre Dame, IN
United States

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