The Global Financial Crisis, Fiscal Stimulus Package and the Chinese Banking Sector - A Pre- and Post-Efficiency Analysis
Author(s)
Xiang, Dong
Sharma, Parmendra
Zhang, Yuming
Griffith University Author(s)
Year published
2019
Metadata
Show full item recordAbstract
This study is the first to examine the impact of two recent key events on technical, cost and profit efficiencies of Chinese commercial banks-the 2007 Global Financial Crisis (GFC) and the subsequent Chinese Government's 2009 fiscal stimulus package. Stochastic frontier analysis together with univariate and multivariate tests are used on a sample of 143 banks, including the big five, joint stock, city, rural and foreign, over the 2006-2013 period. Overall, there is substantial scope for improvement-cost efficiency could improve by up to 50%; technical and profit efficiencies by up to 30%. The effect of the crisis and the ...
View more >This study is the first to examine the impact of two recent key events on technical, cost and profit efficiencies of Chinese commercial banks-the 2007 Global Financial Crisis (GFC) and the subsequent Chinese Government's 2009 fiscal stimulus package. Stochastic frontier analysis together with univariate and multivariate tests are used on a sample of 143 banks, including the big five, joint stock, city, rural and foreign, over the 2006-2013 period. Overall, there is substantial scope for improvement-cost efficiency could improve by up to 50%; technical and profit efficiencies by up to 30%. The effect of the crisis and the stimulus package on various overall and segment efficiencies is, at best, inconsistent and inconclusive.
View less >
View more >This study is the first to examine the impact of two recent key events on technical, cost and profit efficiencies of Chinese commercial banks-the 2007 Global Financial Crisis (GFC) and the subsequent Chinese Government's 2009 fiscal stimulus package. Stochastic frontier analysis together with univariate and multivariate tests are used on a sample of 143 banks, including the big five, joint stock, city, rural and foreign, over the 2006-2013 period. Overall, there is substantial scope for improvement-cost efficiency could improve by up to 50%; technical and profit efficiencies by up to 30%. The effect of the crisis and the stimulus package on various overall and segment efficiencies is, at best, inconsistent and inconclusive.
View less >
Journal Title
Review of Pacific Basin Financial Markets and Policies
Volume
22
Issue
2
Subject
Banking, finance and investment
Social Sciences
Business, Finance
Business & Economics
Global financial crisis
fiscal stimulus package