Tan, Aaron Yong and Floros, Christos (2019) Risk, competition and cost efficiency in the Chinese banking industry. International Journal of Banking, Accounting and Finance, 10 (2). pp. 144-161. ISSN 1755-3830
![]() |
Microsoft Word
- Accepted Version
Download (78kB) |
|
|
PDF
- Accepted Version
Download (528kB) | Preview |
Abstract
Using a sample of Chinese commercial banks over the period 2003-2013, this paper tests the interrelationships between credit risk, competition and cost efficiency in the Chinese banking industry under a three-stage least square estimator. The findings suggest that a higher level of competition leads to higher credit risk of Chinese commercial banks and a higher level of efficiency leads to lower credit risk. In addition, it is found that higher level of efficiency results in higher level of competition in the Chinese banking industry and higher levels of credit risk precede an increase in the level of competition. Finally, the results show that Chinese commercial banks with higher levels of credit risk have lower levels of cost efficiency and competition-efficiency hypothesis holds in the Chinese banking industry. The results provide policy implications to the Chinese government and banking regulatory authorities.
Item Type: | Article |
---|---|
Uncontrolled Keywords: | Credit risk; Competition; Cost efficiency; Chinese banking; Three-stage least square |
Subjects: | H Social Sciences > HG Finance |
Schools: | Huddersfield Business School |
Related URLs: | |
Depositing User: | Yong (Aaron) Tan |
Date Deposited: | 28 Sep 2017 14:51 |
Last Modified: | 25 Jan 2021 08:00 |
URI: | http://eprints.hud.ac.uk/id/eprint/33534 |
Downloads
Downloads per month over past year
Repository Staff Only: item control page
![]() |
View Item |