This article examines the effect of GDP growth on bank profitability in China over the period 2003-2009. The one-step system GMM estimator is used to test the persistence of profitability in Chinese banking industry. The empirical findings suggest that cost efficiency is positively related to bank profitability, while lower profitability can also be explained by higher taxes paid by banks. In a...

This article examines the effect of GDP growth on bank profitability in China over the period 2003-2009. The one-step system GMM estimator is used to test the persistence of profitability in Chinese banking industry. The empirical findings suggest that cost efficiency is positively related to bank profitability, while lower profitability can also be explained by higher taxes paid by banks. In a...

Competition in the Þnancial sector is more complex than in the rest of the economy. On the one hand, concentration in the banking industry reduces (static) efficiency as it does in any industry. On the other hand, concentration may also affect the stability of the banking industry in ways that have no counterpart in other industries. In this paper we consider a variety of models of competition ...

How do banks react to increased interbank competition? Recent banking theory offers conflicting predictions about the impact of interbank competition on bank orientation i.e., the choice of relationship based versus transactional banking and bank industry specialization. We empirically investigate the impact of interbank competition on bank orientation and specialization. We employ a data set c...

Health care service delivery could be described as an information intensive industry. In contrast the banking industry is transaction intensive. Both are able to benefit greatly from the use of computing, information and communications technology. Yet the banking industry is much further advanced in this regard. A transaction based system relies predominantly on data. These are observations or ...

N O T E . Much of the analysis in this article is based on Allen N. Berger, Qinglei Dai, Steven Ongena, and David C. Smith, "To What Extent Will the Banking Industry Be Globalized? A Study of Bank Nationality and Reach in 20 European Nations,'' Journal of Banking and Finance, vol. 27 (March 2003), pp. 383-415. The authors of the present article thank David Birks for making available the "Global...

Combating with immense competition now a day‟s banks are focusing upon customer satisfaction rather than merely rendering their services in the Indian banking industry. Due to the tough competition in banking sector, paradigm changes are seen in this sector. Various innovations are witnessed in this field, because banking sector is adopting innovative ways to improve their services & to win the...

The importance of service delivery technology and online service adoption and usage in the banking industry has received an increased discussion in the literature in recent years. Owing to the fact that Strong online banking services are important drivers for bank performance and customer service delivery; several studies have been carried out on online banking service adoption or acceptance wh...

Electronically mediated self-service technologies in the banking industry have impacted the way banks service consumers. Despite a large body of research on electronic banking channels, no study has been undertaken to empirically explore the fit between electronic banking channels and banking services. Therefore, we developed and validated a service-channel fit conceptualization and an associat...

Models of risk-adjusted or economic return have become considerably more important in the banking industry as the industry has become less regulated. These models range from traditional funds transfer pricing (FTP) models to more sophisticated models of economic value added (EVA). Although grounded in basic principles of economics, these models can be quite complex in practice. In this paper, w...