The effects of reform on China’s bank structure and performance

Fung, K. C.; Heffernan, Shelagh

doi:10.1016/j.jbankfin.2006.11.023

Cited by 264 publications

(160 citation statements)

References 28 publications

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“…The closer to 1/n, the lower the banking concentration is and the fiercer the competition is. The closer to 1, the higher the banking concentration is and the more monopolistic the competition is (Panzar and Rosse, 1987;Huang, 2007;Yin, et al 2009; Fu and Heffernan) [3][4][5][6]. Second, some scholars study the correlation between banking competition and risks based on macro variables and through conjecture variation.…”

Section: Literature Reviewmentioning

confidence: 99%

The Spatial Econometric Analysis of China’s Banking Competition and Its Influential Factors

Liu

2015

Sustainability

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This paper determines alternative indexes to measure banking competition from the perspective of industrial economics. Spatial correlation of competition in China's banking environment is studied from the perspective of spatial economics. A spatial panel data model is built to make an empirical study of factors influencing banking competition. The results show that the global autocorrelation test index Moran's I indicates that China's banking competition has obvious spatial correlation characteristics and significant spatial clustering. The space LISA map indicates that banking competition in most provinces has the characteristics of spatial dependence, and only a few provinces have the characteristics of spatial heterogeneity. Human capital, economic growth, financial scale of development, and foreign direct investment all have a significant positive effect on improving the degree of banking competition. Government intervention has a significant negative impact on the degree of banking competition, while fixed asset investment has no significant impact on it.

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Section: Literature Reviewmentioning

confidence: 99%

The Spatial Econometric Analysis of China’s Banking Competition and Its Influential Factors

Liu

2015

Sustainability

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“…Chinese banking reforms may be said to begin in 1979 [3] with the creation of a "two tier" banking system: the PBC, and four state owned banks. The latter consisted of the Bank of China (BOC), the Agricultural Bank of China (ABC), the China Construction Bank (CCB) and the Industrial and Commercial Bank of China (ICBC).…”

Section: China's Banking Systemmentioning

confidence: 99%

“…Fu and Hefferman (2009) [7] used two sub-periods, 1979-1992 (stage 1) and 1993-present (stage 2) to investigate XE among JSCBs, and SOCBs. JSCBs were about 7% more X-efficient than are SOCBs.…”

Section: X-efficiency Among Chinese Banksmentioning

confidence: 99%

X-Efficiency among Chinese Banks

Frantz

Churchill²,

Mackay³

2015

JSS

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X-efficiency is a non-allocative form of efficiency first introduced by Harvey Leibenstein in 1966.The degree of X-efficiency is measured by the deviation of a firm's costs of production from the technologically minimum costs of production. X-efficiency theory predicts that firms will produce closer to their cost function when they face pressure to do so. In this paper we review studies of X-efficiency among Chinese banks. These studies include the effect of ownership form, for example, state-owned banks versus privately-owned banks, on costs of production. China's entrance into the WTO, the effect of a bank issuing an IPO and the effect of bank size are other topics of empirical studies reviewed in this paper. In addition some studies on Hong Kong banks before 1997 are included.

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“…Equilibrium solution value of the above model show as Equation (14) and Equation (15) from Equation (3) and Equation (13) …”

Section: Resolving the Equilibrium Solution Value Of The Above Model mentioning

confidence: 99%

“…As a result, NPLs decreased, and the rate of NPLs to loan balance decreased also when loan balance was constant or increasing. Another reason is Fu and Heffernan (2009) [15], who reported that new policies had directed at encouraging market entry and increasing the market share of the most efficient banks in China.…”

Section: Analysis Of the Npls Decrease At The State Owned Commercial mentioning

confidence: 99%

Bank Non-Performing Loans (NPLS): A Dynamic Model and Analysis in China

Zeng¹

2012

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In this paper we report on a utility function (loss function) and model that we designed by using optimal control theory based on previous studies. we found that: 1) the Hamiltonian multiplier of the bank NPLs growth rate in the model was obtained using the negative derivitive of the utility (defined as loan function minus non-performing loan function) with respect to the NPLs multiplied by a factor which expresses the rate of change in NPLs over time with respect to the NPLs, the formula is; 2) the model determines the equilibrium value of the saddle point of the bank NPLs; 3) the model can explain the NPLS phenomenon in the Chinese banking system as mainly significant in the state owned banks (SOB S ); 4) The paper supports the following hypothesis by considering the situation in China: the equilibrium value of the bank NPLs is dependent on micro-economic factors but influenced by macro-economic factors.

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The effects of reform on China’s bank structure and performance

Cited by 264 publications

References 28 publications

The Spatial Econometric Analysis of China’s Banking Competition and Its Influential Factors

The Spatial Econometric Analysis of China’s Banking Competition and Its Influential Factors

X-Efficiency among Chinese Banks

Bank Non-Performing Loans (NPLS): A Dynamic Model and Analysis in China

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