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Commercial bank ownership and performance in China

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  • Agyenim Boateng
  • Wei Huang
  • Kufuor

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.

Suggested Citation

  • Agyenim Boateng & Wei Huang & Kufuor, 2015. "Commercial bank ownership and performance in China," Applied Economics, Taylor & Francis Journals, vol. 47(49), pages 5320-5336, October.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5320-5336
    DOI: 10.1080/00036846.2015.1047089
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    References listed on IDEAS

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    1. Chien-Hsun Chen & Hui-Tzu Shih, 2004. "Banking and Insurance in the New China," Books, Edward Elgar Publishing, number 3177.
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    Cited by:

    1. Kusi, Baah & Agbloyor, Elikplimi & Asongu, Simplice & Abor, Joshua, 2021. "Foreign Bank Assets and Presence on Banking Stability in Africa: Does Strong and Weak Corporate Governance Systems under different Regulatory Regimes Matter?," MPRA Paper 110136, University Library of Munich, Germany.
    2. Bian, Wenlong & Deng, Chao, 2017. "Ownership dispersion and bank performance: Evidence from China," Finance Research Letters, Elsevier, vol. 22(C), pages 49-52.
    3. Huang, Qiubin, 2020. "Ownership concentration and bank profitability in China," Economics Letters, Elsevier, vol. 196(C).
    4. Dhananjay Bapat, 2018. "Profitability drivers for Indian banks: a dynamic panel data analysis," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(4), pages 437-451, December.
    5. Ozili, Peterson K, 2018. "Banking Stability Determinants in Africa," MPRA Paper 101825, University Library of Munich, Germany.
    6. Zhang, Tiantian & Matthews, Kent, 2019. "Assessing the degree of financial integration in ASEAN—A perspective of banking competitiveness," Research in International Business and Finance, Elsevier, vol. 47(C), pages 487-500.
    7. Goldstein, Michael A. & Namin, Elmira Shekari, 2023. "Corporate bond liquidity and yield spreads: A review," Research in International Business and Finance, Elsevier, vol. 65(C).
    8. Wan-Li Zhang & Chun-Ping Chang & Yang Xuan, 2022. "The impacts of climate change on bank performance: What’s the mediating role of natural disasters?," Economic Change and Restructuring, Springer, vol. 55(3), pages 1913-1952, August.
    9. Thai V. H. Nguyen & Agyenim Boateng & Tra Thi Thu Pham, 2019. "Involuntary excess reserve and heterogeneous transmission of policy rates to bank lending rates in China," Empirical Economics, Springer, vol. 57(3), pages 1023-1044, September.
    10. Essah, Marcellinus & Andrews, Nathan, 2016. "Linking or de-linking sustainable mining practices and corporate social responsibility? Insights from Ghana," Resources Policy, Elsevier, vol. 50(C), pages 75-85.
    11. Marwa Elnahass & Mohamed Marie & Mohammed Elgammal, 2022. "Terrorist attacks and bank financial stability: evidence from MENA economies," Review of Quantitative Finance and Accounting, Springer, vol. 59(1), pages 383-427, July.
    12. Larissa M. Batrancea, 2021. "An Econometric Approach on Performance, Assets, and Liabilities in a Sample of Banks from Europe, Israel, United States of America, and Canada," Mathematics, MDPI, vol. 9(24), pages 1-22, December.
    13. Yantuan Yu & Jianhuan Huang & Yanmin Shao, 2019. "The Sustainability Performance of Chinese Banks: A New Network Data Envelopment Analysis Approach and Panel Regression," Sustainability, MDPI, vol. 11(6), pages 1-25, March.
    14. Kaodui Li & Yusheng Kong & Sampson Agyapong Atuahene & Geoffrey Bentum-Micah & Michael Kwakye Agyapong, 2020. "Corporate Governance and Banking Stability: The Case of Universal Banks in Ghana," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 1), pages 325-352.

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