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The economic and environmental consequences of bad banking practices have aroused much attention. In China, banks are at the center of shadow banking activities through which they avoid regulation and support environmentally unfriendly businesses such as fossil fuel companies and other high-pollution enterprises. In this paper, we study the impact of bank's engagement in shadow banking activities on its sustainability by using annual panel data of Chinese commercial banks. The result shows that bank's engagement in shadow banking activities has a negative impact on its sustainability and the negative impact of bank's engagement in shadow banking activities is more pronounced for city commercial banks and unlisted banks which are less regulated and lack corporate social responsibility (CSR). Furthermore, we explore the underlying mechanism of our findings and prove that bank's sustainability is impeded because it transforms high-risk loan into shadow banking activities which are less regulated. Finally, by using difference-in-difference (DiD) approach, we find that bank's sustainability improved after the financial regulation on shadow banking activities. Our research provides empirical evidence that the financial regulation on bad banking practices is beneficial for bank's sustainability., (© 2023. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)

Financial activity plays an important role in the analysis of environmental and ecological implications. Previous research shows that shadow banking activities, informal and less regulated financial activities, have become an important part of financial systems after the 2008 financial crisis. However, the impact of shadow banking activities on carbon dioxide emissions has been ignored in previous research. In this paper, we use the panel annual data of 30 Chinese provinces over the period 2013-2020 to study the effect of shadow banking activities on carbon dioxide emissions. The result shows that shadow banking activities have a positive impact on carbon dioxide emissions, and the result is still robust by using dynamic panel regression with general method of moments (GMM) method. Heterogeneity analysis shows that the impact of shadow banking activities on carbon emissions is more pronounced for the secondary industry, which proves that shadow banking activities support more for environmentally unfriendly businesses. Furthermore, by using difference-in-difference (DiD) method, we examine the causal effect of shadow banking regulation policy on carbon dioxide emission reduction and demonstrate that the shadow banking regulation can reduce carbon dioxide emissions. Our research contributes to environment protection and achieving the goal of low-carbon economy by exploring the role of shadow banking activities and financial regulation in carbon dioxide reduction., (© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)

The coronavirus (COVID-19) outbreak in the China has exposed small- and medium-sized enterprises (SMEs) to a variety of challenges, some of which are potentially life-threatening to their sustainability. Therefore, this study aims to investigate the macroeconomic lockdown effects of COVID-19 on small business in China. A survey questionnaire with 313 participants was used to collect the data. In this study, the SEM technique was used to analyse model. The data have been gathered for the study from the managers and employees of Chinese SMEs. The findings of the study show that COVID-19 has a significant negative impact on financial performance, operational performance, profitability, access to finance, and customer satisfaction. According to the study's findings, external support aids have a greater impact on SMEs' ability to survive and thrive through innovation than on their actual performance. The findings of this study have a number of important practical consequences for small- and medium-sized business owners, governments, and policymakers., (© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)

As a consequence of the COVID-19 pandemic outbreak, most commodities experienced significant price drops, which were expected to continue well into 2020. As a result, the Markov switching model is used to study the influence of policy uncertainty and the COVID-19 pandemic on commodity prices in the USA. Commodity markets are stimulated by economic policy uncertainty, according to results from a two-state Markov switching model. In both high and low regimes, economic policy uncertainty (EPU) influences the commodity market, according to the study's findings. However, in the high regime, EPU has a greater influence on the energy and metal sectors. EPU has different influences on commodity markets in high- and low-volatility regimes, according to this study. There is a wide range of correlations between COVID-19 outcomes and EPU and how the prices of natural gas, oil, corn, silver, soybean, copper, gold, and steel respond to these tremors, in both high- and low-volatility tenure. Oil and natural gas, on the other hand, are unaffected by shifts in COVID-19 death rates under either regime. Results show that in both high- and low-volatility regimes, the demand and supply for most commodities are responsive to historical prices., (© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)

The link between CO2 emission and its possible determinant, namely financial development, foreign direct investment, economic growth, and energy consumption, gives a significant environmental research place. This study attempts to determine the nonlinear link between CO2 emissions and its determinants in China for the period 1985-2019. Based on the theoretic links and foundation, we develop an asymmetric autoregressive distributed lag (ARDL) model using annual data in this study. The findings of the nonlinear ARDL suggest that domestic credit from the banks (DCB) has a negative effect on environmental pollution in the short and long run, while domestic credit to the private sector (DCP) has an insignificant negative role in environmental pollution in China. The results show that positive change in DCB causes a decrease in CO2 emissions, while negative change increases it in the short and long term. The coefficient for a positive shock in DCP is a negative, and negative shock in DCP has a significant positive impact on environmental pollution in the short and long run. This means that nonlinear ARDL financial development effects on environmental pollution have deviated from the linear ARDL estimates. Empirical findings also support the presence of asymmetric long-run cointegration among the indicators. The findings also show that energy consumption and real GDP have a significant positive impact on CO2 emissions in the long-run, while foreign direct investment (FDI) improves the environment. Based on the empirical findings, the study endorses the suitable channelization of the finance market towards clean energy projects without compromising economic growth.