Operational performance of commercial banks in the Chinese transitioal economy

Hsiu-Ling Wu and Chien-Hsun Chen

Journal of Developing Areas, 2010, vol. 44, issue 1, 383-396

Abstract: Since the process of economic reform began in China, the Chinese banking system has grown impressively. The aim of this paper is therefore to examine the differences in operational efficiency between China's state-owned commercial banks (SCBs) and shareholding commercial banks using pooled cross-section and time-series data to observe the period between 1996 and 2002. The results showed that, on average, shareholding commercial banks have lower operating costs than the SCBs; that is to say, they display a higher level of "vitality", and greater efficiency. The empirical results also indicated that there has been a significant improvement in the overall operational performance of China's commercial banks in the last few years. By 2002, average operating costs were much lower than during the period 1996-1998. This improvement is clearly related to the growth of the shareholding commercial banks.

Keywords: Operational Efficiency; China's Commercial Banks (search for similar items in EconPapers)
JEL-codes: G21 P34 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://muse.jhu.edu/journals/journal_of_developing_areas/v044/44.1.wu.html

Related works:
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: https://EconPapers.repec.org/RePEc:jda:journl:vol.44:year:2011:issue1:pp:383-396

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().