Are New Tigers supplanting Old Mammoths in China's banking system? Evidence from a sample of city commercial banks
"New Tigers" (including city commercial banks) outperform state-owned commercial banks burdened with non-performing loans from unprofitable state-owned enterprises. We study whether this is solely due to superior corporate governance (multiple shareholders versus total government ownership) or also to the favorable environment (the New Tigers target affluent China, while state-owned commercial banks operate nationwide). Using a field survey on 20 city commercial banks from three provinces at different levels of economic development, we find better performance at those in the East and worse performance at those controlled by state-owned enterprises. Geography and policy do matter, and reform of state-owned commercial banks is necessary to bring better banking to China.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cull, Robert & Xu, Lixin Colin, 2003. "Who gets credit? The behavior of bureaucrats and state banks in allocating credit to Chinese state-owned enterprises," Journal of Development Economics, Elsevier, vol. 71(2), pages 533-559, August.
- Cull, Robert & Xu, Lixin Colin, 2000. "Bureaucrats, State Banks, and the Efficiency of Credit Allocation: The Experience of Chinese State-Owned Enterprises," Journal of Comparative Economics, Elsevier, vol. 28(1), pages 1-31, March.
- Brandt, Loren & Li, Hongbin, 2003.
"Bank discrimination in transition economies: ideology, information, or incentives?,"
Journal of Comparative Economics,
Elsevier, vol. 31(3), pages 387-413, September.
- Loren Brandt & Hongbin Li, 2002. "Bank Discrimination in Transition Economies: Ideology, Information or Incentives?," William Davidson Institute Working Papers Series 517, William Davidson Institute at the University of Michigan.
- Park, Albert & Sehrt, Kaja, 2001.
"Tests of Financial Intermediation and Banking Reform in China,"
Journal of Comparative Economics,
Elsevier, vol. 29(4), pages 608-644, December.
- Albert Park and Kaja Sehrt & Albert Park and Kaja Sehrt, 1999. "Tests of Financial Intermediation and Banking Reform in China," William Davidson Institute Working Papers Series 270, William Davidson Institute at the University of Michigan.
- Claessens, Stijn, 1996.
"Banking reform in transition countries,"
Policy Research Working Paper Series
1642, The World Bank.
- Wei, Shang-Jin & Wang, Tao, 1997. "The siamese twins: Do state-owned banks favor state-owned enterprises in China?," China Economic Review, Elsevier, vol. 8(1), pages 19-29.
- Huang, Yiping, 2002. "Is meltdown of the Chinese banks inevitable?," China Economic Review, Elsevier, vol. 13(4), pages 382-387, December.
- La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2001.
"Government Ownership of Banks,"
Working Paper Series
rwp01-016, Harvard University, John F. Kennedy School of Government.
- Rafael La Porta & Florencio Lopezde-Silanes & Andrei Shleifer, 2000. "Government Ownership of Banks," NBER Working Papers 7620, National Bureau of Economic Research, Inc.
- Rafael La Porta & Florencio Lopez-deSilanes & Andrei Shleifer, 2000. "Government Ownership of Banks," Harvard Institute of Economic Research Working Papers 1890, Harvard - Institute of Economic Research.
- Ramon Moreno, 2002. "Reforming China's banking system," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue may31.
- Dutta, M., 2005. "China's industrial revolution: challenges for a macroeconomic agenda," Journal of Asian Economics, Elsevier, vol. 15(6), pages 1169-1202, January.
- Eric Girardin & Xie Ping, 1997. "Urban Credit Co-Operatives in China," OECD Development Centre Working Papers 125, OECD Publishing.
When requesting a correction, please mention this item's handle: RePEc:eee:jbfina:v:33:y:2009:i:1:p:131-140. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.