Chinese commercial banks’ risk management performance before and after financial crisis: evidence from cost and profit efficiency

Liu, Lian (2012) Chinese commercial banks’ risk management performance before and after financial crisis: evidence from cost and profit efficiency. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

This dissertation aims to test whether the financial crisis has adversely affected the Chinese banking system and whether efficiency has effectively materialized in this system using Data Envelop Analysis and Tobit regression model. First, we analyze the trend of overall efficiency for each bank type pre- and post-crisis and compare the different efficiency estimations and the efficiency scores of different bank ownership. Second, we give out several hypotheses regarding the potential determinants of Chinese banking efficiency and the possible relationship between bank efficiency and each determinant. The results are compared to the previous hypotheses and empirical researches. Some arguments are reasonably obtained to explain the results considering the existing circumstances of Chinese banking system.

The findings of our study provide the evidence that, over the period, the joint-stock banks are the most efficient than other three types of banks, followed by the city commercial banks and rural commercial banks, while the state-owned commercial banks have the lowest level of all efficiency estimations. The banks with high profitability, low credit risks and high liquidity are both cost and profit efficient. However, high asset quality can attribute to high level of cost profitability while there is no significant link between asset quality and profit efficiency.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 04 Aug 2014 11:40
Last Modified: 30 Sep 2016 10:57
URI: http://eprints.nottingham.ac.uk/id/eprint/25555

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