• KDI Journal of Economic Policy
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• v.38 no.1
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• pp.53-70
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• 2016

This paper examines market concentration and its effect on competition in the Chinese commercial banking market. This study also investigates how changes in competition have affected the financial stability of Chinese commercial banks. To test the competitive conditions, we obtained the H statistic of the Panzar-Rosse model from a revenue function equation. The degree of financial stability is estimated by the Z-score formula. The Chinese banking industry has become an increasingly less concentrated market with an increased number of banks. Along with a decreased market concentration, competition in the Chinese banking industry has improved moderately. However, its market structure is still far from a competitive market. An individual bank's ability to earn higher markup or charge a higher net interest margin contributes to its financial soundness, although a higher degree of market concentration may have negative effect on the financial stability of the entire banking system.

• International Area Studies Review
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• v.16 no.3
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• pp.99-118
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• 2012

This study have done comparative analysis of Korean banks' restructure and Chinese banks' reformation, especially derives main factors that influence existence and improvement of competitiveness of Korean banks. The study measured effectiveness of 15 Chinese banks and 13 Korean banks, and conducted empirical analysis of what are the factors affect the efficiency of banks. The result and implication are as follow. First, Korean commercial banks' efficiency is higher than banks in China, but Chinese commercial banks are getting better every year. Second, as the factors affect efficiency of the banks, it shows that the scale of bank, asset reliabilities, ownership structure and financial performance are significant. Third, about the factors affect efficiency, the ownership structure, financial intermediation ratio, and the health of the assets are significant in Chinese banks. Fourth, about the factors affect efficiency, the financial performance and asset reliability are significant in Korean banks. Based on the results, we have identified current problems of Chinese and Korean banks, and also pointed out Korean banks and Government how to improve competitiveness of Bank industry.

• International Area Studies Review
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• v.12 no.2
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• pp.79-97
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• 2008

After entering into the WTO in October, 2001, China started opening her bank industry on a full scale and her financial markets from the end of 2006. It is true that the Chinese commercial banks should make efforts to enhance their operational efficiency for adapting the rapid change of financial environments. In this paper, the efficiency of 4 Chinese state-owned commercial banks and 11 share holding commercial banks has been estimated. Our Tobit model to find out the determinants of these banks' efficiency. The results are as follows: The efficiency of these banks kept being improved from 1999 to 2003. With regard to the relationship between the determinants and the bank efficiency, their capital ratios, ownership structures and government subsidies are significant at the 5% level while the return on asset(ROA) is significant at the 10% level. The relationship between the determinants and the efficiency has showed that the size, capital ratios, ROA and ownership structure showed significantly before the entry to WTO, on the other hand, after WTO their capital ratios are the only factor to determine their efficiencies.

• Korean Journal of Artificial Intelligence
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• v.7 no.1
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• pp.13-16
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• 2019

While the Chinese banks have started the impact of foreign banks. At the same time, rising pressure on foreign exchange reserves and appreciation of the renminbi has prompted Chinese banks to go abroad and diversify their risks. The financial crisis of 2008 has caused the continued turbulence of the major financial markets around the world, and the valuation of foreign financial institutions has been drastically shrinking, providing opportunities for Chinese banks to carry out overseas M&A. Based on the overseas M&A status of Chinese commercial banks, this paper sums up the characteristics of the overseas M&A. Then taking a series of overseas M&A conducted by ICBC from 2006 to 2011 as an example, it analyzes the relationship between M&A and performance growth using grey incidence model. The test shows: there is a positive correlation between both overseas M&A and interest rate differential with performance growth of ICBC, and overseas M&A transactions role in promoting the performance growth is significantly higher than the interest rate differential.

• The Journal of the Convergence on Culture Technology
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• v.8 no.2
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• pp.47-52
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• 2022

The purpose of this study is to identify the risk level of Chinese commercial banks' loan assets and to analyze what factors affect the stability of Chinese commercial banks. In addition, Chinese commercial banks are classified based on the asset size of 200 billion yuan, and the difference in stability according to size is investigated. The analysis results are as follows. First, it was estimated that as the proportion of household and corporate loans of commercial banks in China increased, the stability of banks decreased. Although the Chinese financial authorities are currently restricting the conservative management of loan assets, it will be necessary to preemptively manage risk on loan assets by setting an appropriate standard for loan-to-deposit ratio in the future. Second, as a result of analyzing the stability of large banks based on 200 billion yuan of bank assets, it was estimated that the stability of large banks was lower. As large banks are likely to conduct aggressive loan asset management, continuous management of non-performing assets is required in the future. This study will serve as a measure for improving the stability of commercial banks in China by estimating the effect of loan asset management of Chinese commercial banks on financial stability. In particular, by examining the stability of large banks, a strategy for sustainable development of the financial industry is required by diagnosing the weaknesses of large banks.

• International Area Studies Review
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• v.18 no.3
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• pp.147-173
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• 2014

The economic growth of China, an average of 9% as an external performance, has caused lots of side effects in the country. The social issues such as income gap, especially the wide gap between the rich and poor, and regional divide are the main cause of concerns that China's economic growth is not sustainable. It prompted the Chinese government to realize that institutional regulations on CSR are not optional but required to promote the sustainable development of corporations. In 2006, CSR was addressed for the first time in China, as the government established the November 5 Plan and revised "Company Law". The government garnered social attention by introducing CSR for the first time in November 5 Plan. Also, the government established December 5 Plan in 2011 to set a key goal as 'sustainable development' and reflect concrete measures for CSR in its corporate policy. In particular, Commercial Bank has a social responsibility to establish more concrete, forceful regulations than those of general corporations, as a financial intermediary. Thus, this study is aimed at exploring how the social responsibility of Commercial Bank is reflected in the Banking Act, the issues, and legislative directions on the social responsibility of Commercial Bank in China.

• The Journal of the Convergence on Culture Technology
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• v.10 no.1
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• pp.153-158
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• 2024

Recently, concerns about the spread of credit risk in China's real estate market are gradually increasing. Therefore, it is very meaningful to diagnose the management stability of Chinese commercial banks. This study analyzes the impact of housing prices on the loan proportion and management stability of Chinese commercial banks. In addition, we classify Chinese commercial banks according to size and verify whether there are differences in loan proportion and management stability. If there is a difference by scale, the effect of interaction with housing price changes is also verified. The analysis results are summarized as follows. First, it was found that as the housing price growth rate increases, the proportion of loans from Chinese commercial banks increases. Second, as the rate of increase in housing prices and the proportion of total loans increases, management stability appears to decrease. Third, larger banks were found to have a higher proportion of loans, and smaller banks were found to have greater management stability. The results of this analysis show that Chinese commercial banks' aggressive expansion of their loan proportion is lowering their management stability. Therefore, it is necessary to adjust the loan ratio to the appropriate size level and secure stability with differentiated strategies according to the loan ratio

• Journal of Digital Policy
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• v.1 no.2
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• pp.17-24
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• 2022

In China, the continuous promotion and coverage of scanning code payment has caused an imbalance in the coin market. Coin changers can not only alleviate this problem, but also affect the business development of commercial banks. Therefore, it is meaningful to study the coin changer. The purpose of this paper is to study the impact of coin changers on the business of commercial banks in China. Through on-the-spot visits and based on the manually collected customer data of Chinese commercial banks as the object, combined with the calculation method of financial indicators to conduct case analysis. The results of the study show that the coin changer has a positive impact on the business development of Chinese commercial banks. This paper provides feasible suggestions and new ideas for business development to Chinese commercial banks. At present, there are few related studies on coin exchange machines. This study combines the calculation of financial indicators to verify the policy results, which is the innovation of this study.

• The Journal of the Convergence on Culture Technology
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• v.9 no.1
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• pp.89-94
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• 2023

Recently, credit risk in the Chinese corporate bond market has increased significantly, and there is a possibility that banks that have invested in corporate bonds may become insolvent. The purpose of this study is to empirically analyze the effect of Chinese commercial banks' investment in securities on financial performance. The analysis results are as follows. First, it is estimated that as the share of securities investment by Chinese commercial banks increases, the bank's profitability decreases. It was found that investment in securities did not have a positive impact on profitability due to the increase in credit risk in the corporate bond market and the increase in marginal companies. Second, it is estimated that as the proportion of securities investment by Chinese commercial banks increases, the bank's soundness deteriorates. As credit risk in China's capital market is increasing, continuous management of non-performing assets is required. Chinese commercial banks need portfolio management through securities investment in addition to loan assets to improve profitability. However, volatility should be managed by adjusting the scale of securities management to an appropriate level.

• International Area Studies Review
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• v.15 no.1
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• pp.367-389
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• 2011

This paper examines what factors contribute to the entry of foreign investors to Chinese commercial banks from 1996 to 2008. Empirical results show that using survival analysis, size, liquidity ratio and non-interest incomes are important to foreign investors. This indicates that as Chinese banking system opened, foreign investors invest in bigger but financially weak banks. For Joint-Stock commercial banks, foreign investors invest in banks whose asset qualities and non-interest incomes are low. But for City commercial banks, foreign investors invest in banks that are big but have low liquidity ratios. This results indicate that because City commercial banks operate in only one city, foreign investors require minimum bank size to operate in that city.