Bank Performance in China: A Perspective from Bank Efficiency, Risk-taking and Market Competition

Econometric Modeling: International Financial Markets - Emerging Markets eJournal Pub Date : 2017-03-30 DOI:10.2139/ssrn.2943362

Jianchun Fang, Chi Keung Marco Lau, Zhou Lu, Y. Tan, Hua Zhang

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引用次数: 82

Abstract

Abstract The current paper contributes to the empirical literature on bank profitability by testing the joint-impact of different types of risk, competition in different banking markets and different types of efficiency on bank profitability using a sample of Chinese commercial banks over the period 2003–2017. In particular, we fill in the gap of the empirical studies by examining the impact of efficiency on profitability when banks undertake different levels of risk-taking behaviour and face different degrees of competition. The results show that competition in the Chinese banking markets (deposit market, loan market and non-interest income market) is stronger over the period 2003–2005 and also 2014–2017. In addition, it is found that bank size, cost efficiency, profit efficiency and inflation are significantly related to bank profitability. Finally, we find that the positive impact of cost efficiency on profitability is stronger when banks undertake higher levels of risk and face more competition.

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中国银行绩效:基于银行效率、风险承担和市场竞争的视角

摘要本文以2003-2017年中国商业银行为样本，通过检验不同类型风险、不同银行市场竞争和不同类型效率对银行盈利能力的联合影响，为银行盈利能力的实证研究做出贡献。特别是，我们通过考察银行承担不同程度的风险行为和面临不同程度的竞争时效率对盈利能力的影响，填补了实证研究的空白。结果表明，2003-2005年和2014-2017年期间，中国银行业市场(存款市场、贷款市场和非利息收入市场)的竞争更为激烈。此外，我们发现银行规模、成本效率、利润效率和通货膨胀与银行盈利能力显著相关。最后，我们发现成本效率对盈利能力的积极影响在银行承担更高的风险和面临更激烈的竞争时更强。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Econometric Modeling: International Financial Markets - Emerging Markets eJournal

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