What Explains the Low Profitability of Chinese Banks

By Alicia Garcia-Herrero, Sergio Gavilá, Daniel Santabárbara. 2009

745 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/5201b54554ff44a58405b8ccbb8f52bbb4753349

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Citations in the corpus

Profitability Determinants of Financial Institutions: Evidence from Banks in Pakistan (2018, methodology): “, the potentially endogenous character of certain determinants (García-Herrero et al. 2009; Trujillo-Ponce 2013). In addition, the system-GMM estimator considers the persistence of profits and some characteristics of banks that affect their profitability, which are difficult to measure or identify i”
Determinants of FDI in developed and developing countries: a quantitative analysis using GMM (2018, methodology): “Arellano and Bond (1991) recommended the usage of instrumental variable including the lag of dependent and independent variables (García-Herrero et al., 2009; Athanasoglou et al., 2008), as a result differenced GMM is applied in this paper to incorporate endogeneity issue 4.1.1 Static panel data…”
The impacts of risk and competition on bank profitability in China (2016, methodology): “Capitalization: we use the ratio of shareholders’ equity over total assets to proxy this variable (see Athanasoglou et al., 2008; Garcia-Herrero et al., 2009; Dietrich and Wanzenried, 2011).”
Factors influencing bank risk in Europe: Evidence from the financial crisis (2015, result): “The first of these metrics, the stock of NPLs, which has also been used in recent studies (e.g., García-Herrero et al., 2009), yields expected signs and significance that are similar to those of our original model.”
Bank performance in China: A Perspective from Bank efficiency, risk-taking and market competition (2019, background): “Using a sample of Chinese commercial banks over the period 1997-2004, Garcia-Herrero et al. (2009) explain the”
Intellectual Capital Performance and Profitability of Banks: Evidence from Pakistan (2019, background): “A number of studies have found a negative impact of credit risk on profitability (Dietrich and Wanzenried 2011; García-Herrero et al. 2009; Yao et al. 2018).”
Bank profitability and GDP growth in China: a note (2012, methodology): “This paper examines the relationship between bank profitability of Chinese banks and GDP using recent data; we also test (1) if poor profitability is explained by the large volume of NPL, and (2) if banks with higher capital levels show high probability (Garcia-Herrero et al., 2009).”
Are foreign banks more profitable than domestic banks? Home- and host-country effects of banking market structure, governance, and supervision (2011, background): “Furthermore, García-Herrero et al. (2009) find that better capitalized Chinese banks tend to be more profitable and indicate that a less concentrated banking system increases bank profitability.”
Monetary Policy and Bank Profitability in a Low Interest Rate Environment (2018, neutral): “In line with previous studies (e.g. Athanasoglou et al., 2008; García-Herrero et al., 2009), we find that cost efficiency has a positive and highly significant impact on profitability: a one standard deviation (i.e. 25 percentage point) increase in the cost-to-income ratio reduces ROA by 6 basis…”
Governance, Efficiency and Risk Taking in Chinese Banking (2017, neutral): “In a study on China’s banks, García-Herrero, Gavilá, and Santabárbara (2009) also report a negative association between ownership concentration and performance.”
Foreign bank entry and firms access to bank credit: Evidence from China (2010, background): “Similarly, García-Herrero et al. (2009) and Lin and Zhang (2009) find that the four state-owned commercial banks have been least profitable in the banking system; and Jia (2009) shows that lending by state-owned banks is less prudent than lending by joint-equity banks.”