Abstract
This paper tests the interrelationships among risk, competition, and efficiency in the Chinese banking industry between 2003 and 2013, with an efficiency-adjusted Lerner index and stability inefficiency as the indicators of competition and insolvency risk. The results show that Chinese commercial banks with higher efficiency have higher credit risk and insolvency risk, but lower liquidity risk and capital risk. Greater competition decreases credit risk and insolvency risk, but increases liquidity risk. Credit risk and insolvency risk are significantly and positively related to efficiency, while liquidity risk and capital risk are significantly and negatively related. Finally, lower liquidity risk decreases competition.
| Original language | English |
|---|---|
| Pages (from-to) | 223-236 |
| Number of pages | 14 |
| Journal | Global Finance Journal |
| Volume | 35 |
| Early online date | 12 Dec 2017 |
| DOIs | |
| Publication status | Published - Feb 2018 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 8 Decent Work and Economic Growth -
SDG 9 Industry, Innovation, and Infrastructure -
SDG 16 Peace, Justice and Strong Institutions
Fingerprint
Dive into the research topics of 'Risk, competition, and efficiency in banking: Evidence from China'. Together they form a unique fingerprint.Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver