Does foreign bank entry make Chinese banks stronger?
Article
Article Title | Does foreign bank entry make Chinese banks stronger? |
---|---|
ERA Journal ID | 18370 |
Article Category | Article |
Authors | Yin, Yingkai (Author), Zhang, Yahua (Author), Zhang, Xiaotian Tina (Author) and Hu, Fang (Author) |
Journal Title | Global Economic Review |
Journal Citation | 44 (3), pp. 269-285 |
Number of Pages | 17 |
Year | 2015 |
Place of Publication | United Kingdom |
ISSN | 1226-508X |
1229-4098 | |
1744-3873 | |
Digital Object Identifier (DOI) | https://doi.org/10.1080/1226508X.2015.1055779 |
Web Address (URL) | http://www.tandfonline.com/doi/full/10.1080/1226508X.2015.1055779 |
Abstract | China has encouraged its domestic banks to introduce foreign investment since the early 2000s. In the meantime, China has gradually fulfilled its WTO accession commitment to give foreign banks the same treatment as their Chinese counterparts in the last decade. This research has examined the effects of the two modes of foreign bank entry, namely, minority ownership participation, and setting up branches and subsidiaries, on the performance of Chinese banks. Our results suggest that there is no systematically significant impact of the minority ownership participation on the performance indicators of Chinese banks. However, it appears that the physical presence of foreign banks has been a significant driver for domestic banks to improve profitability and efficiency. Opening the country to foreign banks appears to have made Chinese banks stronger and more competitive. |
Keywords | Chinese banks; foreign bank entry; minority ownership; bank performance |
ANZSRC Field of Research 2020 | 380107. Financial economics |
Public Notes | File reproduced in accordance with the copyright policy of the publisher/author. |
Byline Affiliations | Shanghai University, China |
School of Commerce | |
Saint Mary's College of California, United States | |
Griffith University | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q3309/does-foreign-bank-entry-make-chinese-banks-stronger
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