Banking In China: Are New Tigers Supplanting the Mammoths?

Giovanni Ferri

No 52008, Working Papers from Hong Kong Institute for Monetary Research

Abstract: "New Tigers" (including city commercial banks) outperform state-owned commercial banks burdened with non-performing loans from unprofitable state-owned enterprises. We study whether this is due solely to superior corporate governance (multiple shareholders versus total government ownership) or also to the favorable environment (the New Tigers target affluent China, while state-owned commercial banks operate nationwide). Using a field survey on 20 city commercial banks from three provinces at different levels of economic development, we find better performance at those in the East and worse performance at those controlled by state-owned enterprises. Geography and policy do matter, and reform of state-owned commercial banks is necessary to bring better banking to China.

Keywords: China; State Ownership of Banks; Corporate Governance; Geography and Performance (search for similar items in EconPapers)
JEL-codes: G21 G30 G38 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2008-05
New Economics Papers: this item is included in nep-ban, nep-cna, nep-dev and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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