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

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 typ...

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Main Author: Liu, Lian
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2012
Online Access:https://eprints.nottingham.ac.uk/25555/
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author Liu, Lian
author_facet Liu, Lian
author_sort Liu, Lian
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-255552022-03-21T16:10:04Z https://eprints.nottingham.ac.uk/25555/ Chinese commercial banks’ risk management performance before and after financial crisis: evidence from cost and profit efficiency Liu, Lian 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. 2012 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/25555/1/dissertation_of_Lian_Liu.pdf 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)
spellingShingle Liu, Lian
Chinese commercial banks’ risk management performance before and after financial crisis: evidence from cost and profit efficiency
title Chinese commercial banks’ risk management performance before and after financial crisis: evidence from cost and profit efficiency
title_full Chinese commercial banks’ risk management performance before and after financial crisis: evidence from cost and profit efficiency
title_fullStr Chinese commercial banks’ risk management performance before and after financial crisis: evidence from cost and profit efficiency
title_full_unstemmed Chinese commercial banks’ risk management performance before and after financial crisis: evidence from cost and profit efficiency
title_short Chinese commercial banks’ risk management performance before and after financial crisis: evidence from cost and profit efficiency
title_sort chinese commercial banks’ risk management performance before and after financial crisis: evidence from cost and profit efficiency
url https://eprints.nottingham.ac.uk/25555/