The Determinants of Bank Profitability in China under Global Financial Crisis
Abstract The purpose of this study is to explore bank-specific, industry-specific characteristics and macroeconomic factors affecting bank profitability from 2013 and 2017, during which, the banking sector was still influence by post crisis and the strong governance. The analysis highlights the lin...
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2018
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| Online Access: | https://eprints.nottingham.ac.uk/53998/ |
| _version_ | 1848799006470176768 |
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| author | WANG, WEI |
| author_facet | WANG, WEI |
| author_sort | WANG, WEI |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Abstract
The purpose of this study is to explore bank-specific, industry-specific characteristics and macroeconomic factors affecting bank profitability from 2013 and 2017, during which, the banking sector was still influence by post crisis and the strong governance. The analysis highlights the links between bank profitability and policies made more recently like the stimulus package in Global Financial Crisis left a large volume of non-performing loans. The empirical method applied is Two-Step System GMM. Both ROAA and ROAE are used to measure the dependent variable, although the results suggests that ROAA is more suitable in Chinese case. All relationship of variables and bank profitability are in line with expectation. As for bank-specific ones like cost to income, impaired loan to gross loan, interest income to total assets, Z SCORE, equity to total assets and logarithm of total assets are found significant. The study presents the evidence that the larger size of bank may produce less profit. Concerning the industry and macroeconomic variables, the evidence is highly significant. Banks generate more profits in an upward economic condition. While, variables like loan loss reserves to total assets and tax to tax before profit are found no impact on ROAA and ROAE. |
| first_indexed | 2025-11-14T20:28:48Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-53998 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:28:48Z |
| publishDate | 2018 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-539982022-04-21T13:55:46Z https://eprints.nottingham.ac.uk/53998/ The Determinants of Bank Profitability in China under Global Financial Crisis WANG, WEI Abstract The purpose of this study is to explore bank-specific, industry-specific characteristics and macroeconomic factors affecting bank profitability from 2013 and 2017, during which, the banking sector was still influence by post crisis and the strong governance. The analysis highlights the links between bank profitability and policies made more recently like the stimulus package in Global Financial Crisis left a large volume of non-performing loans. The empirical method applied is Two-Step System GMM. Both ROAA and ROAE are used to measure the dependent variable, although the results suggests that ROAA is more suitable in Chinese case. All relationship of variables and bank profitability are in line with expectation. As for bank-specific ones like cost to income, impaired loan to gross loan, interest income to total assets, Z SCORE, equity to total assets and logarithm of total assets are found significant. The study presents the evidence that the larger size of bank may produce less profit. Concerning the industry and macroeconomic variables, the evidence is highly significant. Banks generate more profits in an upward economic condition. While, variables like loan loss reserves to total assets and tax to tax before profit are found no impact on ROAA and ROAE. 2018-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/53998/1/Dissertation%204292562%20WEI%20WANG.pdf WANG, WEI (2018) The Determinants of Bank Profitability in China under Global Financial Crisis. [Dissertation (University of Nottingham only)] Bank profitability; Chinese commercial banks; GMM analysis |
| spellingShingle | Bank profitability; Chinese commercial banks; GMM analysis WANG, WEI The Determinants of Bank Profitability in China under Global Financial Crisis |
| title | The Determinants of Bank Profitability in China under Global Financial Crisis |
| title_full | The Determinants of Bank Profitability in China under Global Financial Crisis |
| title_fullStr | The Determinants of Bank Profitability in China under Global Financial Crisis |
| title_full_unstemmed | The Determinants of Bank Profitability in China under Global Financial Crisis |
| title_short | The Determinants of Bank Profitability in China under Global Financial Crisis |
| title_sort | determinants of bank profitability in china under global financial crisis |
| topic | Bank profitability; Chinese commercial banks; GMM analysis |
| url | https://eprints.nottingham.ac.uk/53998/ |