Bank specific and macroeconomic determinants of bank profitability: empirical evidence from the China banking sector

This paper seeks to examine the determinants of the profitability of the Chinese banking sector during the post-reform period of 2000–2005. The empirical findings from this study suggest that all the determinants variables have statistically significant impact on China banks profitability. However,...

Full description

Bibliographic Details
Main Authors:	Sufian, Fadzlan, Habibullah, Muzafar Shah
Format:	Article
Language:	English
Published:	Springer 2009
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/5796/ http://irep.iium.edu.my/5796/ http://irep.iium.edu.my/5796/ http://irep.iium.edu.my/5796/1/274.pdf

id	iium-5796
recordtype	eprints
spelling	iium-57962011-11-29T06:47:08Z http://irep.iium.edu.my/5796/ Bank specific and macroeconomic determinants of bank profitability: empirical evidence from the China banking sector Sufian, Fadzlan Habibullah, Muzafar Shah HG1501 Banking This paper seeks to examine the determinants of the profitability of the Chinese banking sector during the post-reform period of 2000–2005. The empirical findings from this study suggest that all the determinants variables have statistically significant impact on China banks profitability. However, the impacts are not uniform across bank types. We find that liquidity, credit risk, and capitalization have positive impacts on the state owned commercial banks (SOCBs) profitability, while the impact of cost is negative. Similar to their SOCB counterparts, we find that joint stock commercial banks (JSCB) with higher credit risk tend to be more profitable, while higher cost results in a lower JSCB profitability levels. During the period under study, the empirical findings suggest that size and cost results in a lower city commercial banks (CITY) profitability, while the more diversified and relatively better capitalized CITY tend to exhibit higher profitability levels. The impact of economic growth is positive, while growth in money supply is negatively related to the SOCB and CITY profitability levels. Springer 2009-06 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5796/1/274.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2009) Bank specific and macroeconomic determinants of bank profitability: empirical evidence from the China banking sector. Frontiers of Economics in China, 4 (2). pp. 274-291. ISSN 1673-3568 (O), 1673-3444 (P) http://www.springerlink.com/content/e835h5t8q1k0m646/ DOI: 10.1007/s11459-009-0016-1
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Sufian, Fadzlan Habibullah, Muzafar Shah Bank specific and macroeconomic determinants of bank profitability: empirical evidence from the China banking sector
description	This paper seeks to examine the determinants of the profitability of the Chinese banking sector during the post-reform period of 2000–2005. The empirical findings from this study suggest that all the determinants variables have statistically significant impact on China banks profitability. However, the impacts are not uniform across bank types. We find that liquidity, credit risk, and capitalization have positive impacts on the state owned commercial banks (SOCBs) profitability, while the impact of cost is negative. Similar to their SOCB counterparts, we find that joint stock commercial banks (JSCB) with higher credit risk tend to be more profitable, while higher cost results in a lower JSCB profitability levels. During the period under study, the empirical findings suggest that size and cost results in a lower city commercial banks (CITY) profitability, while the more diversified and relatively better capitalized CITY tend to exhibit higher profitability levels. The impact of economic growth is positive, while growth in money supply is negatively related to the SOCB and CITY profitability levels.
format	Article
author	Sufian, Fadzlan Habibullah, Muzafar Shah
author_facet	Sufian, Fadzlan Habibullah, Muzafar Shah
author_sort	Sufian, Fadzlan
title	Bank specific and macroeconomic determinants of bank profitability: empirical evidence from the China banking sector
title_short	Bank specific and macroeconomic determinants of bank profitability: empirical evidence from the China banking sector
title_full	Bank specific and macroeconomic determinants of bank profitability: empirical evidence from the China banking sector
title_fullStr	Bank specific and macroeconomic determinants of bank profitability: empirical evidence from the China banking sector
title_full_unstemmed	Bank specific and macroeconomic determinants of bank profitability: empirical evidence from the China banking sector
title_sort	bank specific and macroeconomic determinants of bank profitability: empirical evidence from the china banking sector
publisher	Springer
publishDate	2009
url	http://irep.iium.edu.my/5796/ http://irep.iium.edu.my/5796/ http://irep.iium.edu.my/5796/ http://irep.iium.edu.my/5796/1/274.pdf
first_indexed	2023-09-18T20:14:34Z
last_indexed	2023-09-18T20:14:34Z
_version_	1777407701482995712

Bank specific and macroeconomic determinants of bank profitability: empirical evidence from the China banking sector

Similar Items