Risk, capital and efficiency in Chinese banking
Yong Tan () and
Journal of International Financial Markets, Institutions and Money, 2013, vol. 26, issue C, 378-393
We assess the relationship between bank efficiency, risk and capital for a sample of Chinese commercial banks employing three efficiency indexes and four risk indicators under a three stage least square method in a panel data framework. The empirical evidence suggests that there is a positive and significant relationship between risk (loan-loss provision as a fraction to total loans or LLPTL) and efficiency in Chinese banking industry, while the relationship between risk (Z-score) and level of capitalization is negative and significant.
Keywords: Efficiency; Risk; Capital; SUR; Chinese banks (search for similar items in EconPapers)
JEL-codes: E5 E52 G21 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:26:y:2013:i:c:p:378-393
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