Future of Chinese Banking -- An Analysis of efficiency, determinants of profitability and influence of online financing and shadow banking

Abstract The purpose of this study is to predict the future of Chinese banking by analyzing determinants of profitability and the influence of online financing as well as shadow banking. The sample was formed by the data of 60 Chinese banks from the period of 2009 to 2014. An unbalanced panel dat...

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Main Author: He, Rui
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/36689/
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author He, Rui
author_facet He, Rui
author_sort He, Rui
building Nottingham Research Data Repository
collection Online Access
description Abstract The purpose of this study is to predict the future of Chinese banking by analyzing determinants of profitability and the influence of online financing as well as shadow banking. The sample was formed by the data of 60 Chinese banks from the period of 2009 to 2014. An unbalanced panel data was gained from the original data. The parametric SFA(stochastic frontier approach) was applied for efficiency estimation and GMM (Generalize method of moments) was employed to find out determinants of profitability. In the second last part of the study, the influence of online financing and shadow banking were discussed from both positive and negative sides. The limitation of this study is the ignorance of risk taking in SFA modeling. In addition, we can only make discussion instead of statistic analysis due to the lack of specific data about shadow banking and online financing. In conclusion, our study suggests that Chinese banking sector would have a bright future with more diversification and high level of efficiency. Bank profitability can be adjusted by changing bank specific, industry specific and macro-economic determinants. Shadow banking and online financing would challenge traditional banking but also become a motivation of traditional banks development.
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spelling nottingham-366892017-10-19T16:39:45Z https://eprints.nottingham.ac.uk/36689/ Future of Chinese Banking -- An Analysis of efficiency, determinants of profitability and influence of online financing and shadow banking He, Rui Abstract The purpose of this study is to predict the future of Chinese banking by analyzing determinants of profitability and the influence of online financing as well as shadow banking. The sample was formed by the data of 60 Chinese banks from the period of 2009 to 2014. An unbalanced panel data was gained from the original data. The parametric SFA(stochastic frontier approach) was applied for efficiency estimation and GMM (Generalize method of moments) was employed to find out determinants of profitability. In the second last part of the study, the influence of online financing and shadow banking were discussed from both positive and negative sides. The limitation of this study is the ignorance of risk taking in SFA modeling. In addition, we can only make discussion instead of statistic analysis due to the lack of specific data about shadow banking and online financing. In conclusion, our study suggests that Chinese banking sector would have a bright future with more diversification and high level of efficiency. Bank profitability can be adjusted by changing bank specific, industry specific and macro-economic determinants. Shadow banking and online financing would challenge traditional banking but also become a motivation of traditional banks development. 2016-09-14 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36689/1/dissertation%20report.pdf He, Rui (2016) Future of Chinese Banking -- An Analysis of efficiency, determinants of profitability and influence of online financing and shadow banking. [Dissertation (University of Nottingham only)] Keywords: Chinese banking efficiency determinants of profitability shadow banking online financing
spellingShingle Keywords: Chinese banking
efficiency
determinants of profitability
shadow banking
online financing
He, Rui
Future of Chinese Banking -- An Analysis of efficiency, determinants of profitability and influence of online financing and shadow banking
title Future of Chinese Banking -- An Analysis of efficiency, determinants of profitability and influence of online financing and shadow banking
title_full Future of Chinese Banking -- An Analysis of efficiency, determinants of profitability and influence of online financing and shadow banking
title_fullStr Future of Chinese Banking -- An Analysis of efficiency, determinants of profitability and influence of online financing and shadow banking
title_full_unstemmed Future of Chinese Banking -- An Analysis of efficiency, determinants of profitability and influence of online financing and shadow banking
title_short Future of Chinese Banking -- An Analysis of efficiency, determinants of profitability and influence of online financing and shadow banking
title_sort future of chinese banking -- an analysis of efficiency, determinants of profitability and influence of online financing and shadow banking
topic Keywords: Chinese banking
efficiency
determinants of profitability
shadow banking
online financing
url https://eprints.nottingham.ac.uk/36689/