IDEAS home Printed from https://ideas.repec.org/p/bbv/wpaper/0804.html
   My bibliography  Save this paper

Is the Chinese banking system benefiting from foreign investors?

Author

Listed:
  • Alicia Garcia-Herrero
  • Daniel Santabarbara

Abstract

We find empirical evidence that the Chinese banking system has benefited from the entry of foreign investors through higher profitability and increased efficiency of the banking system. Foreign partcipation, which consists of a minority stake in a Chinese bank (in contrast to the typical pattern in emerging countries), appears to be most effective when the foreign bank acts as a strategic investor. Purely financial investors contribute little, if anything, to bank performance.

Suggested Citation

  • Alicia Garcia-Herrero & Daniel Santabarbara, 2008. "Is the Chinese banking system benefiting from foreign investors?," Working Papers 0804, BBVA Bank, Economic Research Department.
  • Handle: RePEc:bbv:wpaper:0804
    as

    Download full text from publisher

    File URL: http://www.bbvaresearch.com/wp-content/uploads/migrados/WP_0804_tcm348-212967.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dan Luo & Shujie Yao, 2010. "World financial crisis and the rise of Chinese commercial banks: an efficiency analysis using DEA," Applied Financial Economics, Taylor & Francis Journals, vol. 20(19), pages 1515-1530.
    2. García-Herrero, Alicia & Gavilá, Sergio & Santabárbara, Daniel, 2009. "What explains the low profitability of Chinese banks?," Journal of Banking & Finance, Elsevier, vol. 33(11), pages 2080-2092, November.
    3. Ying Xu, 2011. "Foreign Strategic Investment and Banking Efficiency in China," Chapters,in: China’s Economy in the Post-WTO Environment, chapter 6 Edward Elgar Publishing.
    4. Wu, Meng-Wen & Shen, Chung-Hua & Lu, Chin-Hwa, 2015. "Do more foreign strategic investors and more directors improve the earnings smoothing? The case of China," International Review of Economics & Finance, Elsevier, vol. 36(C), pages 3-16.
    5. Pessarossi, Pierre & Godlewski, Christophe J. & Weill, Laurent, 2010. "Foreign bank lending and information asymmetries in China," BOFIT Discussion Papers 20/2010, Bank of Finland, Institute for Economies in Transition.

    More about this item

    Keywords

    China; banking system; foreign participation;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bbv:wpaper:0804. 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: (OSCAR DE LAS PENAS SANCHEZ-CARO). General contact details of provider: http://edirc.repec.org/data/ebbvaes.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.