Commercial bank ownership and performance in China

Agyenim Boateng; Wei Huang; Nana Kwabena Kufuor

doi:10.1080/00036846.2015.1047089

Commercial bank ownership and performance in China

Agyenim Boateng (Lead / Corresponding author), Wei Huang, Nana Kwabena Kufuor

Economics

Research output: Contribution to journal › Article › peer-review

34 Citations (Scopus)

Abstract

This study examines the determinants of bank performance based on proxy variables that assess the quality of assets, profitability, liquidity and overall performance. Using a sample of 111 Chinese commercial banks over the period of 2000–2012, we find that foreign banks appear to have better asset quality and overall performance although lower profitability compared to domestic banks. In contrast, the state-owned banks tend to be more profitable and have better liquidity position compared with other domestic banks and foreign banks. At bank level, equity/liability ratio exerts significant influence on overall bank performance, while at the macroeconomic level, per capital GDP, GDP growth, inflation and unemployment rates appear to have a bearing on bank performance.

Original language	English
Pages (from-to)	5320-5336
Number of pages	17
Journal	Applied Economics
Volume	47
Issue number	49
Early online date	20 May 2015
DOIs	https://doi.org/10.1080/00036846.2015.1047089
Publication status	Published - 2015

Keywords

China
commercial bank performance
factors
foreign banks entry reforms

ASJC Scopus subject areas

Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1080/00036846.2015.1047089

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title = "Commercial bank ownership and performance in China",

abstract = "This study examines the determinants of bank performance based on proxy variables that assess the quality of assets, profitability, liquidity and overall performance. Using a sample of 111 Chinese commercial banks over the period of 2000–2012, we find that foreign banks appear to have better asset quality and overall performance although lower profitability compared to domestic banks. In contrast, the state-owned banks tend to be more profitable and have better liquidity position compared with other domestic banks and foreign banks. At bank level, equity/liability ratio exerts significant influence on overall bank performance, while at the macroeconomic level, per capital GDP, GDP growth, inflation and unemployment rates appear to have a bearing on bank performance.",

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AU - Boateng, Agyenim

AU - Huang, Wei

AU - Kufuor, Nana Kwabena

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AB - This study examines the determinants of bank performance based on proxy variables that assess the quality of assets, profitability, liquidity and overall performance. Using a sample of 111 Chinese commercial banks over the period of 2000–2012, we find that foreign banks appear to have better asset quality and overall performance although lower profitability compared to domestic banks. In contrast, the state-owned banks tend to be more profitable and have better liquidity position compared with other domestic banks and foreign banks. At bank level, equity/liability ratio exerts significant influence on overall bank performance, while at the macroeconomic level, per capital GDP, GDP growth, inflation and unemployment rates appear to have a bearing on bank performance.

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KW - commercial bank performance

KW - factors

KW - foreign banks entry reforms

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JO - Applied Economics

JF - Applied Economics

IS - 49

ER -

Commercial bank ownership and performance in China

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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