Data on Economics Reported by Researchers at Zhejiang Gongshang University (Primary Dealer Status, Endorsement Signal, and Bank Funding Costs): Economics

2026 JUN 02 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Research findings on Economics are discussed in a new report. According to news originating from Hangzhou, People’s Republic of China, by NewsRx correspondents, research stated, “In China’s open market operations, the central bank selects a group of commercial banks each year to serve as primary dealers. We investigate the impact of the primary dealer status (PDS) on bank funding costs from a policy signal perspective, as measured by the NCD issuance rates.”

Financial supporters for this research include Humanities and Social Sciences Youth Foundation, Ministry of Education, National Office of Philosophy and Social Sciences.

Our news journalists obtained a quote from the research from Zhejiang Gongshang University, “We find that the PDS significantly reduces banks’ funding costs. The endorsement signal mechanism indicates that the PDS enables banks to receive credit endorsement from the central bank, thereby conveying signals about their credit quality to investors and improving investor risk expectations. Furthermore, The PDS reduces banks’ allocation to shadow-banking-related risky assets, and mitigates their insolvency risk.”

According to the news editors, the research concluded: “This study offers important implications for enhancing the central bank’s institutions and supporting the sound management of banks.”

This research has been peer-reviewed.

For more information on this research see: Primary Dealer Status, Endorsement Signal, and Bank Funding Costs. Finance Research Letters, 2026;99. Finance Research Letters can be contacted at: Academic Press Inc Elsevier Science, 525 B St, Ste 1900, San Diego, CA 92101-4495, USA. (Elsevier - www.elsevier.com; Finance Research Letters - http://www.journals.elsevier.com/finance-research-letters/)

The news correspondents report that additional information may be obtained from Yujie He, Zhejiang Gongshang University, School of Finance, Hangzhou 310018, People’s Republic of China.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.frl.2026.109930. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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