World Financial Crisis and Efficiency of Chinese Commercial Banks

World Economy

Volumn 34, Issue 5, 2011, Pages 805-825

  Luo, Dan ^a   Yao, Shujie ^a,b   Chen, Jian ^a   Wang, Jianling ^b  

^a UNIVERSITY OF NOTTINGHAM   (United Kingdom)

^b XI'AN JIAOTONG UNIVERSITY   (China)

Author keywords

[No Author keywords available]

Indexed keywords

BANKING; COMPETITION (ECONOMICS); ECONOMY OF SCALE; EFFICIENCY MEASUREMENT; FINANCIAL CRISIS; FINANCIAL MARKET; GOVERNANCE APPROACH; STOCK MARKET; WORLD BANK;

CHINA;

EID: 79957537230     PISSN: 03785920     EISSN: 14679701     Source Type: Journal    
DOI: 10.1111/j.1467-9701.2011.01354.x     Document Type: Article

References (45)

1. Aigner, D., C. A. K. Lovell and P. Schmidt (1977), 'Formulation and Estimation of Stochastic Frontier Production Function Models', Journal of Econometrics, 6, 1, 21-37.
2. Allen, L. and A. Rai (1996), 'Operational Efficiency in Banking: An International Comparison', Journal of Banking and Finance, 20, 4, 655-72.
3. Almanac of China's Finance and Banking, Beijing, 1999-2008.
4. Andersen, N. and C. Petersen (1993), 'A Procedure for Ranking Efficiency Units in Data Envelopment Analysis', Management Science, 39, 10, 1261-64.
5. Areddy, J. T. (2008), 'China Targets Rural Economy', Wall Street Journal (Eastern Edition), (24 October 2008), p. C.3.
6. Ariff, M. and L. Can (2008), 'Cost and Profit Efficiency of Chinese Banks: A Non-Parametric Analysis', China Economic Review, 19, 2, 260-73.
7. Banker, R. D., A. Charnes and W. W. Cooper (1984), 'Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis', Management Science, 30, 9, 1078-92.
8. Bankscope. Available at:
9. Battese, G. E. and T. J. Coelli (1995), 'A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data', Empirical Economics, 20, 2, 325-32.
10. Battese, G. E. and G. Corra (1977), 'Estimation of a Production Frontier Model: With Application to the Pastoral Zone of Eastern Australia', Australian Journal of Agricultural Economics, 21, 3, 169-79.
11. Bauer, P. W., A. N. Berger, G. Ferrier and D. B. Humphrey (1998), 'Consistency Conditions for Regulatory Analysis of Financial Institutions: A Comparison of Frontier Efficiency Methods', Journal of Economics and Business, 50, 2, 85-114.
12. Berger, A. N. and D. B. Humphery (1992), 'Megamergers in Banking and the Use of Cost Efficiency as an Antitrust Defence', Antitrust Bulletin, 37, Fall, 541-600.
13. Berger, A. N., I. Hasan and M. M. Zhou (2009), 'Bank Ownership and Efficiency in China: What Will Happen in the World's Largest Nation?', Journal of Banking and Finance, 33, 1, 113-30.
14. Bos, J. E. B. and J. W. Kolari (2005), 'Large Bank Efficiency in Europe and the United States: Are There Economic Motivations for Geographic Expansion in Financial Services?', Journal of Business, 74, 4, 1555-92.
15. Chang, T. C. and Y. H. Chiu (2006), 'Affecting Factors on Risk-Adjusted Efficiency in Taiwan's Banking Industry', Contemporary Economic Policy, 24, 4, 634-48.
16. Charnes, A., W. W. Cooper and E. Rhodes (1978), 'Measuring the Efficiency of Decision Making Units', European Journal of Operational Research, 2, 6, 429-44.
17. Chen, G. M., B. S. Lee and O. Rui (2001), 'Foreign Ownership Restrictions and Market Segmentation in China's Stock Markets', Journal of Financial Research, 24, 1, 133-55.
18. Chen, X., M. Skuly and K. Brown (2005), 'Banking Efficiency in China: Application of DEA to Pre- and Post-Deregulation Eras: 1993-2000', China Economic Review, 16, 3, 229-45.
19. China Banking Regulatory Commission (CBRC). Available at
20. Claessens, S., A. Demirguc-Kunt and H. Huizinga (2001), 'How does Foreign Entry Affect Domestic Banking Markets?', Journal of Banking and Finance, 25, 5, 891-911.
21. Fu, X. Q. and S. Heffernan (2007), 'Cost-X-Efficiency in China's Banking Sector', China Economic Review, 18, 1, 35-53.
22. Hao, J., W. C. Hunter and W. K. Yang (2001), 'Deregulation and Efficiency: The Case of Private Korean Banks', Journal of Economics and Business, 53, 2/3, 237-54.
23. Hasan, I. and K. Marton (2003), 'Development and Efficiency of the Banking Sector in a Transitional Economy: Hungarian Experience', Journal of Banking and Finance, 27, 12, 2249-71.
24. Hawser, A. (2009), 'Annual Survey: Emerging Market Banks: Asia', Global Finance, 23, 5, 54-57.
25. Hu, J. L., Y. Y. Su and C. P. Chen (2008), 'Efficiency of Nationwide Banks in China', Journal of American Academy of Business, 13, 20, 84-91.
26. Jiang, C. X., S. J. Yao and Z. Y. Zhang (2009), 'The Effects of Governance Changes on Bank Efficiency in China: A Stochastic Distance Function Approach', China Economic Review, 20, 4, 717-31.
27. Kjetland, R. (2009), 'International Finance: RBS is Weighing the Sale of Bank of China Stake', Wall Street Journal ( Eastern Edition) (9 January 2009), p. C.2.
28. Kumbhakar, S. C. and H. J. Wang (2005), 'Estimation of Growth Convergence using a Stochastic Production Frontier Approach', Economics Letters, 88, 3, 300-05.
29. Laurencenson, J. and F. M. Qin (2008), 'Has Minority Foreign Investment in China's Banks Improved Their Cost Efficiency?', China and World Economy, 16, 3, 57-74.
30. Laurenceson, J. and Y. Zhao (2008), 'Efficiency amongst China's Banks: A DEA Analysis Five Years after WTO Entry', China Economic Journal, 1, 3, 275-85.
31. Leibenstein, H. (1966), 'Allocative Efficiency vs. X-Efficiency', American Economic Review, 56, 3, 392-415.
32. Lin, X. C. and Y. Zhang (2009), 'Bank Ownership Reform and Bank Performance in China', Journal of Banking and Finance, 33, 1, 20-29.
33. Liu, C. and W. L. Song (2004), 'Jiyu SFA de Zhongguo shangye yinhang xiaolv yanjiu' (Efficiency Study of Chinese Commercial Banks: SFA), Jingrong Yanjiu (Journal of Financial Research), 6, 138-42.
34. Meeusen, W. and J. Van den Broeck (1977), 'Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error', International Economic Review, 18, 2, 435-44.
35. Rhoads, S. A. (1993), 'The Efficiency Effects of Horizontal (In-market) Bank Mergers', Journal of Banking and Finance, 17, 2/3, 411-22.
36. Wang, C. and Z. X. Tan (2007), 'Woguo shangye yinhang xiaolv jiegou yanjiu' ('Efficiency Structure of the Chinese Commercial Banks'), Jingji Yanjiu (Economic Research Journal), 7, 123.
37. Wei, Y. and L. Wang (2000), 'Zhongguo shangye yinhang xiaolv yanjiu: yizhong fei canshu de fenxi' ('Efficiency Study of Chinese Commercial Banks, A Non-Parametric Approach'), Jingrong Yanjiu (Journal of Financial Research), 3, 88-96.
38. Weill, L. (2003), 'Banking Efficiency in Transition Economies: The Role of Foreign Ownership', Economics of Transition, 11, 3, 569-92.
39. Weill, L. (2004), 'Measuring Cost Efficiency in European Banking: A Comparison of Frontier Techniques', Journal of Productivity Analysis, 21, 2, 133-52.
40. Xinhua Net (2009), 'China's Banks Take Number One Spot in 2008 Net Profits', Available at: (14 April 2009).
41. Yahoo Finance. Available at.
42. Yao, S. J., Z. W. Han and G. F. Feng (2008), 'Ownership Reform, Foreign Competition and Efficiency of Chinese Commercial Banks: A Non-Parametric Approach', The World Economy, 31, 10, 1310-26.
43. Yao, S. J., C. X. Jiang and G. F. Feng (2007), 'WTO Challenges and Efficiency of Chinese Banks', Applied Economies, 39, 5, 629-43.
44. Zhang, J. H. (2003), 'Woguo shangyeyinhang de X-xiaolv fenxi' ('X-Efficiency Study of Chinese Commercial Banks'), Jinrong Yanjiu (Journal of Financial Research), 6, 46-57.
45. Zheng, M. and Y. Zhang (2004), 'Zhongguo yinhang xiaoyi de shizheng fenxi' ('Empirical Study on the Efficiency of Chinese Banks'), Xiamen Daxue Xebio (Journal of Xiamen University) (Arts and Social Science), 6, 106-14.