Financial Education on Bank Lending and Economic Volatility in Taiwan

Bienvenido S. Cortes; Shu-Hen Chiang

doi:10.12973/ejmste/76969

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Bienvenido S. Cortes ¹, Shu-Hen Chiang ² ^*

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¹ Department of Economics, Finance and Banking, Pittsburg State University, USA² Department of Finance, Chung-Yuan Christian University, Chung-li district, Taoyuan city, TAIWAN^* Corresponding Author

Abstract

Education regarding money and banking always tells us that banking is a critical point for macroeconomics. However, there is not enough evidence to further prove the relationship between banking and volatility. In our view, an integration of small and medium-sized enterprises (SMEs) with serious financing constraints, small open economy and bank-based financial system can provide the best opportunity to explore bank-volatility nexus. Fortunately, Taiwan is the most notable case to offer the key to an understanding of banking and volatility for our students of finance. There is sufficient evidence based on panel data analysis with spatial dependency to support the significance of regional bank lending (credit supply) rather than the stock market (credit demand) in explaining volatility. It is clear that the role of bank system in volatility in Taiwan deserves explicit emphasis.

Keywords

volatility
SMEs
credit view
bank lending

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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Article Type: Research Article

EURASIA J Math Sci Tech Ed, 2017, Volume 13, Issue 10, 6395-6406

https://doi.org/10.12973/ejmste/76969

Publication date: 20 Sep 2017

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Article Downloads: 767

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How to cite this article

APA

Cortes, B. S., & Chiang, S.-H. (2017). Financial Education on Bank Lending and Economic Volatility in Taiwan. Eurasia Journal of Mathematics, Science and Technology Education, 13(10), 6395-6406. https://doi.org/10.12973/ejmste/76969

Vancouver

Cortes BS, Chiang SH. Financial Education on Bank Lending and Economic Volatility in Taiwan. EURASIA J Math Sci Tech Ed. 2017;13(10):6395-406. https://doi.org/10.12973/ejmste/76969

AMA

Cortes BS, Chiang SH. Financial Education on Bank Lending and Economic Volatility in Taiwan. EURASIA J Math Sci Tech Ed. 2017;13(10), 6395-6406. https://doi.org/10.12973/ejmste/76969

Chicago

Cortes, Bienvenido S., and Shu-Hen Chiang. "Financial Education on Bank Lending and Economic Volatility in Taiwan". Eurasia Journal of Mathematics, Science and Technology Education 2017 13 no. 10 (2017): 6395-6406. https://doi.org/10.12973/ejmste/76969

Harvard

Cortes, B. S., and Chiang, S.-H. (2017). Financial Education on Bank Lending and Economic Volatility in Taiwan. Eurasia Journal of Mathematics, Science and Technology Education, 13(10), pp. 6395-6406. https://doi.org/10.12973/ejmste/76969

MLA

Cortes, Bienvenido S. et al. "Financial Education on Bank Lending and Economic Volatility in Taiwan". Eurasia Journal of Mathematics, Science and Technology Education, vol. 13, no. 10, 2017, pp. 6395-6406. https://doi.org/10.12973/ejmste/76969