Risk, Capital and Efficiency in Chinese Banking

Yong Tan, Christos Floros

Research output: Contribution to journalArticlepeer-review

158 Citations (Scopus)


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.

Original languageEnglish
Pages (from-to)378-393
Number of pages16
JournalJournal of International Financial Markets, Institutions and Money
Issue number1
Publication statusPublished - Oct 2013


Dive into the research topics of 'Risk, Capital and Efficiency in Chinese Banking'. Together they form a unique fingerprint.

Cite this