Commercial bank ownership and performance in China

Agyenim Boateng, Wei Huang, Nana Kwabena Kufuor

Research output: Journal PublicationArticlepeer-review

20 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 languageEnglish
Pages (from-to)5320-5336
Number of pages17
JournalApplied Economics
Volume47
Issue number49
DOIs
Publication statusPublished - 21 Oct 2015

Keywords

  • China
  • commercial bank performance
  • factors
  • foreign banks entry reforms

ASJC Scopus subject areas

  • Economics and Econometrics

Fingerprint

Dive into the research topics of 'Commercial bank ownership and performance in China'. Together they form a unique fingerprint.

Cite this