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Bank ownership and performance in China: some further evidence

Marigliano, Mattia LU (2017) EKHR81 20171
Department of Economic History
Abstract
China has recently completed an important part of the reform process of its banking system partially privatising its major Commercial banks with both domestic and foreign capital. This paper investigates the effect of different ownership structures to banks’ economic performance, using a panel data analysis of 57 banks over the 2000-2016 period. A specific focus will be given to the Big-Five Commercial banks and the role of foreign ownership. The main findings show that private domestic banks are the most efficient and profitable banks; on the opposite side, Policy banks are by far the least efficient and profitable banks; Big Five banks have instead closed the cost efficiency and Asset quality gap with the best performing private banks,... (More)
China has recently completed an important part of the reform process of its banking system partially privatising its major Commercial banks with both domestic and foreign capital. This paper investigates the effect of different ownership structures to banks’ economic performance, using a panel data analysis of 57 banks over the 2000-2016 period. A specific focus will be given to the Big-Five Commercial banks and the role of foreign ownership. The main findings show that private domestic banks are the most efficient and profitable banks; on the opposite side, Policy banks are by far the least efficient and profitable banks; Big Five banks have instead closed the cost efficiency and Asset quality gap with the best performing private banks, while profitability findings remain mixed. Also, strategic minority foreign ownership in State-owned banks is found to be positively associated with bank performance. (Less)
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author
Marigliano, Mattia LU
supervisor
organization
course
EKHR81 20171
year
type
H1 - Master's Degree (One Year)
subject
keywords
banking sector, China, panel data, ownership, performance.
language
English
id
8926620
date added to LUP
2017-11-14 14:02:14
date last changed
2017-11-14 14:02:14
@misc{8926620,
  abstract     = {China has recently completed an important part of the reform process of its banking system partially privatising its major Commercial banks with both domestic and foreign capital. This paper investigates the effect of different ownership structures to banks’ economic performance, using a panel data analysis of 57 banks over the 2000-2016 period. A specific focus will be given to the Big-Five Commercial banks and the role of foreign ownership. The main findings show that private domestic banks are the most efficient and profitable banks; on the opposite side, Policy banks are by far the least efficient and profitable banks; Big Five banks have instead closed the cost efficiency and Asset quality gap with the best performing private banks, while profitability findings remain mixed. Also, strategic minority foreign ownership in State-owned banks is found to be positively associated with bank performance.},
  author       = {Marigliano, Mattia},
  keyword      = {banking sector,China,panel data,ownership,performance.},
  language     = {eng},
  note         = {Student Paper},
  title        = {Bank ownership and performance in China: some further evidence},
  year         = {2017},
}