Nonperforming Loans and Productivity in Chinese Banks, 1997-2006

Kent Gerard Matthews (), Xu Zhang and Jianguang Guo

Chinese Economy, 2009, vol. 42, issue 2, pages 30-47

Abstract: A bootstrap method for Malmquist index estimates of productivity growth is constructed with appropriate confidence intervals. This paper adjusts for the quality of the output by accounting for the nonperforming loans (NPLs) on balance sheets and tests the robustness of the results by examining alternative sets of outputs. The productivity growth of state-owned banks and joint-stock banks is compared, and the determinants are evaluated. It was found that the average productivity of Chinese banks improved modestly over this period. Adjusting for the quality of loans by treating NPLs as an undesirable output, the average productivity growth of the state-owned banks was zero or negative, while the productivity of the joint-stock banks was markedly higher.

Date: 2009

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=X7800W6K686243P3 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Non-Performing Loans and Productivity in Chinese Banks: 1997-2006 (2008)
Working Paper: Non-Performing Loans and Productivity in Chinese Banks: 1997-2006 (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:mes:chinec:v:42:y:2009:i:2:p:30-47

Access Statistics for this article

More articles in Chinese Economy from M.E. Sharpe, Inc.
Series data maintained by Christopher F. Baum ().