Stability and economic performances in the banking industry: The case of China

Tan, Yong; Walheer, Barnabé

doi:10.1016/j.qref.2024.04.009

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Stability and economic performances in the banking industry: The case of China

Tan, Yong; Walheer, Barnabé

2024 • In Quarterly Review of Economics and Finance, 95, p. 326 - 345

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https://hdl.handle.net/2268/319202

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10.1016/j.qref.2024.04.009

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Keywords :

Banking system; China; Economic performances; Shadow prices; Stability; Finance; Economics and Econometrics

Abstract :

[en] We estimate stability performances in the Chinese banking industry over the 2007–2017 period using four risk indicators under nonparametric modelling. We are the first to calculate the risk indicator shadow prices, and we use a new way of studying the relationship between stability and economic performance. In particular, we reexamine stability performances when banks achieve their best economic performances. This questions the existence of stability rents, which form a prime reason for the banking authority to consider economic performance. Finally, we verify whether ownership has an impact on our results and investigate the role of the interest rate liberalization reforms.

Disciplines :

Finance

Author, co-author :

Tan, Yong; Huddersfield Business School, University of Huddersfield, United Kingdom

Walheer, Barnabé ; Université de Liège - ULiège > HEC Liège : UER > UER Economie : Microéconométrie et économétrie appliquée

Language :

English

Title :

Stability and economic performances in the banking industry: The case of China

Publication date :

June 2024

Journal title :

Quarterly Review of Economics and Finance

ISSN :

1062-9769

Publisher :

Elsevier B.V.

Volume :

Pages :

326 - 345

Peer reviewed :

Peer Reviewed verified by ORBi

Additional URL :

https://api.elsevier.com/content/article/PII:S1062976924000620?httpAccept=text/xml

Funders :

F.R.S.-FNRS - Fonds de la Recherche Scientifique

Funding text :

This work is supported by the Fonds de la Recherche Scientifique (FNRS) under Grant No. J.0193.23 .

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since 03 June 2024

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