Cardiff Economics Working Papers Cardiff Business School Working Paper Series Rational Inefficiency and Non-performing Loans in Chinese Banking: a Non-parametric Bootstrapping Approach
نویسندگان
چکیده
The existing Chinese banking system was born out of a state-planning framework focussed on the funding of state-owned enterprises. Despite the development of a modern banking system, numerous studies of Chinese banking point to its high level of average inefficiency. Much of this inefficiency relates to the high level of non-performing loans held on the banks books. This study argues that a significant component of inefficiency relates to a defunct bureaucratic incentive structure. Using bootstrap non-parametric techniques the paper decomposes costinefficiency into X-inefficiency and rational inefficiency caused by bureaucratic rent seeking. In contrast to other studies of the Chinese banking sector, the paper argues that a change in the incentive structure and the competitive threat of the opening up of the banking market in 2007 has produced reduced inefficiency and improved performance.
منابع مشابه
Cardiff Economics Working Papers Bank Efficiency in China, Rent Seeking versus X-inefficiency: a Non-parametric Bootstrapping Approach Cardiff Business School Working Paper Series Bank Efficiency in China, Rent Seeking versus X-inefficiency: a Non-parametric Bootstrapping Approach
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