He, L., Chen, L. and Hong Liu, F. (2017) Banking reforms, performance and risk in China. Applied Economics. ISSN 0003-6846
Abstract
We investigate the impact of the banking reform started from 2005 on ownership structures in China on commercial banks’ profitability, efficiency and risk over the period 2000–2012, providing comprehensive evidence on the impact of banking reform in China. We find that banks on average tend to have higher profitability, lower risk and lower efficiency after the reforms, and the results are robust with our difference-in-difference approach. Our results also show that the Big 5 state-owned banks (SOCB) underperform banks with other types of ownership when risk is measured by non-performing loans (NPLs) over the entire study period but tend to have fewer NPLs than other banks during the post-reform period. Our results provide some supporting evidence on the ongoing banking reforms in China, suggesting that attracting strategic foreign investors and listing SOCBs on stock exchanges appear to be effective ways to help SOCBs deal with the problem of NPLs and manage their risk.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2017 Informa UK Limited, trading as Taylor & Francis Group. This is an author produced version of a paper subsequently published in Applied Economics. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Bank reforms; performance; efficiency; risk; ownership structure |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 11 Jan 2017 16:27 |
Last Modified: | 06 Jul 2018 00:38 |
Published Version: | http://doi.org/10.1080/00036846.2016.1273501 |
Status: | Published |
Publisher: | Taylor & Francis |
Refereed: | Yes |
Identification Number: | 10.1080/00036846.2016.1273501 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:109761 |