Information disclosure and depositor discipline in the Chinese banking sector

► The growth rate of deposits is sensitive to bank fundamentals after controlling for macroeconomic factors, diversity in ownership structure, and government intervention. ► A bank publicly disclosing more transparent information in its financial reports, is more likely to experience growth in its deposit base. ► Banks characterised by high information transparency, well-capitalised and adopted international accounting standards, are more able to attract funds by offering higher interest rates.