Commercial bank ownership and performance in China

Agyenim Boateng, Wei Huang, Nana, K. Kufuor

    Research output: Contribution to journalArticle

    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
    Early online date20 May 2015
    DOIs
    Publication statusPublished - 2015

    Keywords

    • bank performance
    • Chinese commercial banks
    • foreign banks
    • state-owned banks

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