The Determinants of China’s Commercial Banks: Does the Shareholding Reform Matter?

Abstract This paper analyses what are the determinants of China’s commercial bank performances, and whether shareholding reformation improves bank performance. Return on average assets (ROAA), return on average equities (ROAE) and net profit margin (NIM) are employed as a measure of bank performance...

Full description

Bibliographic Details
Main Author: Huang, Meng
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2009
Subjects:
Online Access:https://eprints.nottingham.ac.uk/23021/
_version_ 1848792496238231552
author Huang, Meng
author_facet Huang, Meng
author_sort Huang, Meng
building Nottingham Research Data Repository
collection Online Access
description Abstract This paper analyses what are the determinants of China’s commercial bank performances, and whether shareholding reformation improves bank performance. Return on average assets (ROAA), return on average equities (ROAE) and net profit margin (NIM) are employed as a measure of bank performance, individually. I investigate the unbalanced panel data of 17 China national commercial banks, includes the “big four” SOCBs and 13 national joint stock banks from 2001 to 2008. Two models are established. To estimate these two models, both fixed/ random effect approach, and system GMM approach are employed. I find that, for both models, cost to income ratio, equity to total assets ratio, and loan loss reserve to gross loans ratio are important determinants of bank performance when I employ ROAA and NIM as a indictor of bank performance. Macroeconomic economic environments influence the bank performance in the form of net interest margin. However, so far, the results indicate that shareholding reform does not produce any strong or marked effect on bank performance in China as I expect.
first_indexed 2025-11-14T18:45:19Z
format Dissertation (University of Nottingham only)
id nottingham-23021
institution University of Nottingham Malaysia Campus
institution_category Local University
language English
last_indexed 2025-11-14T18:45:19Z
publishDate 2009
recordtype eprints
repository_type Digital Repository
spelling nottingham-230212017-12-26T16:02:11Z https://eprints.nottingham.ac.uk/23021/ The Determinants of China’s Commercial Banks: Does the Shareholding Reform Matter? Huang, Meng Abstract This paper analyses what are the determinants of China’s commercial bank performances, and whether shareholding reformation improves bank performance. Return on average assets (ROAA), return on average equities (ROAE) and net profit margin (NIM) are employed as a measure of bank performance, individually. I investigate the unbalanced panel data of 17 China national commercial banks, includes the “big four” SOCBs and 13 national joint stock banks from 2001 to 2008. Two models are established. To estimate these two models, both fixed/ random effect approach, and system GMM approach are employed. I find that, for both models, cost to income ratio, equity to total assets ratio, and loan loss reserve to gross loans ratio are important determinants of bank performance when I employ ROAA and NIM as a indictor of bank performance. Macroeconomic economic environments influence the bank performance in the form of net interest margin. However, so far, the results indicate that shareholding reform does not produce any strong or marked effect on bank performance in China as I expect. 2009-09-19 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/23021/1/WHAT_ARE_THE_DETEMINANTS_OF_CHINA%27S_COMMERCIAL_BANKS_PERFORMANCE_.pdf Huang, Meng (2009) The Determinants of China’s Commercial Banks: Does the Shareholding Reform Matter? [Dissertation (University of Nottingham only)] (Unpublished) bank performance shareholding reform
spellingShingle bank performance
shareholding reform
Huang, Meng
The Determinants of China’s Commercial Banks: Does the Shareholding Reform Matter?
title The Determinants of China’s Commercial Banks: Does the Shareholding Reform Matter?
title_full The Determinants of China’s Commercial Banks: Does the Shareholding Reform Matter?
title_fullStr The Determinants of China’s Commercial Banks: Does the Shareholding Reform Matter?
title_full_unstemmed The Determinants of China’s Commercial Banks: Does the Shareholding Reform Matter?
title_short The Determinants of China’s Commercial Banks: Does the Shareholding Reform Matter?
title_sort determinants of china’s commercial banks: does the shareholding reform matter?
topic bank performance
shareholding reform
url https://eprints.nottingham.ac.uk/23021/