Bank ownership reform and bank performance in China

Xiaochi Lin and Yi Zhang

Journal of Banking & Finance, 2009, vol. 33, issue 1, 20-29

Abstract: Using a panel of Chinese banks over the 1997-2004 period, we assess the effect of bank ownership on performance. Specifically, we conduct a joint analysis of the static, selection, and dynamic effects of (domestic) private, foreign and state ownership. We find that the "Big Four" state-owned commercial banks are less profitable, are less efficient, and have worse asset quality than other types of banks except the "policy" banks (static effect). Further, the banks undergoing a foreign acquisition or public listing record better pre-event performance (selection effect); however, we find little performance change in either the short or the long term.

Keywords: State; ownership; Private; Foreign; Bank; performance; China (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (206)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:33:y:2009:i:1:p:20-29

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