The impact of foreign capital on the Chinese banking market
Bibliographic Data
| ID | 12917781 |
|---|---|
| Authors | Yuan Yuan (0000-0001-7440-8939, The University of Tokyo, corresponding author), Hiroshi Gunji (0000-0002-4399-5306, Daito Bunka University) |
| Year | 2010 |
| Volume | 2 |
| Issue | 3 |
| Pages | 285-296 |
| Publication date | 2010-03-02 |
| Open Access | No |
| Type | ARTICLE |
| Venue | China Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 1753-8963 • E-ISSN: 1753-8971 |
| Publisher | Routledge (PUBLISHER • GB) |
| DOI | 10.1080/17538960903529519 |
| OpenAlex | W2073244091 |
| Language | EN |
| References cited | 15 |
In China, the foreign capital share of banks was restricted to 25% until 2006. Does such a relatively low share of foreign capital have any impact on the banking sector? In this paper, we use panel data on 19 major banks during 1996–2004 to shed light on the impact of foreign capital participation on the Chinese banking industry. We find that although the operating performance of foreign-owned banks is basically worse than that of domestic banks, as the market share of foreign-owned banks rises, they improve. For domestic banks, non-interest income decreases, while interest income increases. Therefore, the net effect of the foreign-owned banks' share on the profitability of domestic banks is small
Business · Capital (architecture · China · Economics · Financial system · Foreign capital · Foreign direct investment · Foreign ownership · Macroeconomics · Market share · Monetary economics · Panel data · Profitability index · Banking stability, regulation, efficiency · Corporate Finance and Governance · Islamic Finance and Banking Studies · Finance
| Highly cited | No |
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