This paper analyzes technical efficiency in China＇s banking system by large banks and small city banks as well as the pre-WTO and post-WTO accession periods＇. Using an unbalanced panel dataset for 63 banks over 1997...This paper analyzes technical efficiency in China＇s banking system by large banks and small city banks as well as the pre-WTO and post-WTO accession periods＇. Using an unbalanced panel dataset for 63 banks over 1997-2006 and employing the stochastic frontier function approach, the empirical results reveal that the new entrants, small city banks, experienced a slightly higher efficiency score than incumbent large banks, on average. Compared with the pre- WTO accession period, the efficiency score is found to have improved significantly after entry into the WTO as a result of the competition effect. This competition effect is particularly relevant for small city banks. Finally, determinants of X-inefficiency are examined展开更多
China ＂s state-owned banks have undergone radical changes over the past two decades, including partial privatization and listing in both the Hong Kong Stock Exchange and the Shanghai Stock Exchange. This paper evalua...China ＂s state-owned banks have undergone radical changes over the past two decades, including partial privatization and listing in both the Hong Kong Stock Exchange and the Shanghai Stock Exchange. This paper evaluates the effects of these changes by analyzing the efficiency of Chinese banks over the period 1998-2012 using two frontier techniques and comparative analysis. The findings suggest that the performance and technical efficiency of the Big Four banks improved considerably after property rights reform, but this improvement is not sufficient to keep the banks at the production frontier. Tobit regressions confirm that static ownership effects are negative but that the property rights reform has had significant and positive effects on the technical efficiency of state-owned commercial banks. GDP growth and the financial crisis have had positive effects on the efficiency of Chinese banks, which is more significant for joint stock commercial banks than state-owned commercial banks. The results indicate the value of ownership reforms of state-owned asset management companies and insurance companies and the establishment of a countercyclical capital buffer.展开更多
There is a growing body of evidence that interest rate spreads in Africa are higher for big banks compared to small banks.One concern is that big banks might be using their market power to charge higher lending rates ...There is a growing body of evidence that interest rate spreads in Africa are higher for big banks compared to small banks.One concern is that big banks might be using their market power to charge higher lending rates as they become larger,more efficient,and unchallenged.In contrast,several studies found that when bank size increases beyond certain thresholds,diseconomies of scale are introduced that lead to inefficiency.In that case,we also would expect to see widened interest margins.This study examines the connection between bank size and efficiency to understand whether that relationship is influenced by exploitation of market power or economies of scale.Using a panel of 162 African banks for 2001–2011,we analyzed the empirical data using instrumental variables and fixed effects regressions,with overlapping and non-overlapping thresholds for bank size.We found two key results.First,bank size increases bank interest rate margins with an inverted U-shaped nexus.Second,market power and economies of scale do not increase or decrease the interest rate margins significantly.The main policy implication is that interest rate margins cannot be elucidated by either market power or economies of scale.Other implications are discussed.展开更多
基金the Financial support of the Center for China Studies of the National Taiwan University
文摘This paper analyzes technical efficiency in China＇s banking system by large banks and small city banks as well as the pre-WTO and post-WTO accession periods＇. Using an unbalanced panel dataset for 63 banks over 1997-2006 and employing the stochastic frontier function approach, the empirical results reveal that the new entrants, small city banks, experienced a slightly higher efficiency score than incumbent large banks, on average. Compared with the pre- WTO accession period, the efficiency score is found to have improved significantly after entry into the WTO as a result of the competition effect. This competition effect is particularly relevant for small city banks. Finally, determinants of X-inefficiency are examined
基金the Fulbright program and "985" project for financial support
文摘China ＂s state-owned banks have undergone radical changes over the past two decades, including partial privatization and listing in both the Hong Kong Stock Exchange and the Shanghai Stock Exchange. This paper evaluates the effects of these changes by analyzing the efficiency of Chinese banks over the period 1998-2012 using two frontier techniques and comparative analysis. The findings suggest that the performance and technical efficiency of the Big Four banks improved considerably after property rights reform, but this improvement is not sufficient to keep the banks at the production frontier. Tobit regressions confirm that static ownership effects are negative but that the property rights reform has had significant and positive effects on the technical efficiency of state-owned commercial banks. GDP growth and the financial crisis have had positive effects on the efficiency of Chinese banks, which is more significant for joint stock commercial banks than state-owned commercial banks. The results indicate the value of ownership reforms of state-owned asset management companies and insurance companies and the establishment of a countercyclical capital buffer.
文摘There is a growing body of evidence that interest rate spreads in Africa are higher for big banks compared to small banks.One concern is that big banks might be using their market power to charge higher lending rates as they become larger,more efficient,and unchallenged.In contrast,several studies found that when bank size increases beyond certain thresholds,diseconomies of scale are introduced that lead to inefficiency.In that case,we also would expect to see widened interest margins.This study examines the connection between bank size and efficiency to understand whether that relationship is influenced by exploitation of market power or economies of scale.Using a panel of 162 African banks for 2001–2011,we analyzed the empirical data using instrumental variables and fixed effects regressions,with overlapping and non-overlapping thresholds for bank size.We found two key results.First,bank size increases bank interest rate margins with an inverted U-shaped nexus.Second,market power and economies of scale do not increase or decrease the interest rate margins significantly.The main policy implication is that interest rate margins cannot be elucidated by either market power or economies of scale.Other implications are discussed.
