| ID | 090939 |
| Title Proper | Bank reforms, competition and efficiency in China's banking system |
| Other Title Information | are small city bank entrants more efficient? |
| Language | ENG |
| Author | Lin, Hui-Lin ; Tsao, Chia-Chi ; Yang, Chih-Hai |
| Publication | 2009. |
| Summary / Abstract (Note) | This paper analyzes technical efficiency in China's banking system by large banks and small city banks as well as the pre-WTO and post-WTO accession periods. Using an unbalanced panel dataset for 63 banks over 1997-2006 and employing the stochastic frontier function approach, the empirical results reveal that the new entrants, small city banks, experienced a slightly higher efficiency score than incumbent large banks, on average. Compared with the pre-WTO accession period, the efficiency score is found to have improved significantly after entry into the WTO as a result of the competition effect. This competition effect is particularly relevant for small city banks. Finally, determinants of X-inefficiency are examined. |
| `In' analytical Note | China and World Economy Vol. 17, No. 5; Sep-Oct 2009: p.69-87 |
| Journal Source | China and World Economy Vol. 17, No. 5; Sep-Oct 2009: p.69-87 |
| Key Words | Bank Reform ; Competition ; Efficiency ; Small Bank ; China |