The Determinants of Bank Profitability in China under Lending Restriction and Supervision

This paper examined the impact of liquidity under lending restriction and supervision on profitability determinants for the profits growth of commercial banks in China, using a balanced panel data of 34 commercial banks during the period of 2009-2014. In our model, we choose Return on Assets (ROA) a...

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Main Author: Du, Lijin
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/36807/
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author Du, Lijin
author_facet Du, Lijin
author_sort Du, Lijin
building Nottingham Research Data Repository
collection Online Access
description This paper examined the impact of liquidity under lending restriction and supervision on profitability determinants for the profits growth of commercial banks in China, using a balanced panel data of 34 commercial banks during the period of 2009-2014. In our model, we choose Return on Assets (ROA) as the dependent variable and divide the determinants of bank profitability into internal and external factors, including liquidity ratios as a controlling independent variable. As we find that liquidity indicator is the endogenous variable of bank profitability, we use General Moment Movement (GMM) estimator to eliminate the effect of biased endogeneity and then measure significant factors contributed to promoting Chinese bank’s performance.
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language English
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spelling nottingham-368072017-10-19T17:02:57Z https://eprints.nottingham.ac.uk/36807/ The Determinants of Bank Profitability in China under Lending Restriction and Supervision Du, Lijin This paper examined the impact of liquidity under lending restriction and supervision on profitability determinants for the profits growth of commercial banks in China, using a balanced panel data of 34 commercial banks during the period of 2009-2014. In our model, we choose Return on Assets (ROA) as the dependent variable and divide the determinants of bank profitability into internal and external factors, including liquidity ratios as a controlling independent variable. As we find that liquidity indicator is the endogenous variable of bank profitability, we use General Moment Movement (GMM) estimator to eliminate the effect of biased endogeneity and then measure significant factors contributed to promoting Chinese bank’s performance. 2016 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36807/1/The%20Determinants%20of%20Bank%20Profitability%20in%20China%20under%20Lending%20Restriction%20and%20Supervision.pdf Du, Lijin (2016) The Determinants of Bank Profitability in China under Lending Restriction and Supervision. [Dissertation (University of Nottingham only)] Liquidity Lending restriction Supervision Profits growth Profitability determinants GMM
spellingShingle Liquidity
Lending restriction
Supervision
Profits growth
Profitability determinants
GMM
Du, Lijin
The Determinants of Bank Profitability in China under Lending Restriction and Supervision
title The Determinants of Bank Profitability in China under Lending Restriction and Supervision
title_full The Determinants of Bank Profitability in China under Lending Restriction and Supervision
title_fullStr The Determinants of Bank Profitability in China under Lending Restriction and Supervision
title_full_unstemmed The Determinants of Bank Profitability in China under Lending Restriction and Supervision
title_short The Determinants of Bank Profitability in China under Lending Restriction and Supervision
title_sort determinants of bank profitability in china under lending restriction and supervision
topic Liquidity
Lending restriction
Supervision
Profits growth
Profitability determinants
GMM
url https://eprints.nottingham.ac.uk/36807/