|
This study uses the event study method to explore the impact of selective credit control on real estate loans issued by the Central Bank on December 7, 2020 and March 18, 2021, on the stock returns of the domestic banking industry. The empirical results are as follows:
The selective credit control issued by the Central Bank on December 7, 2020 does have a great negative impact on the banking industry in terms of housing loan business. Therefore, on the day when the event was announced, the trading day after the event was announced, and during the announcement period, there were very significant negative abnormal returns in banking stocks. Furthermore, the negative impact of this selective credit control on the stocks of publicly-owned banks is greater than that of privately-owned banks. Secondly, the selective credit control issued by the central bank on March 18, 2021 also has a negative impact on banking stocks. However, the negative impact of this selective credit control on bank stocks is smaller than the selective credit control of the central bank on December 7, 2020.
|