This book applies econometric techniques to test the relationship between efficiency and risk within the banking industry in China. Chapters examine how efficiency has been affected by different types of risk-taking behaviour and how risk has been an important determinant of bank efficiency in the context of the series of reforms impacting banks in China since 1978. The author begins by unpacking these reforms and proceeds to explain relevant theories of efficiency and bank risk before reviewing empirical literature in evaluating risk and efficiency in the banking industry. He then investigates the issues of efficiency and risk in the Chinese banking industry using a number of modern econometric techniques. The final chapters present the results of original empirical research conducted by the author, and provide valuable implications to Chinese government as well as banking regulatory authorities to make relevant policies.
Dr Yong Tan is a Senior Lecturer at the University of Huddersfield Business School, UK. He has published a number of research articles in a wide range of academic journals. He is also the author of a research monograph entitled Performance, Risk and Competition in the Chinese Banking Industry.
1) Introduction.- 2) The reforms and structure of Chinese banking sector 2.1 Introduction 3. Theory of bank efficiency and bank risk 4. Literature review on bank efficiency and bank risk 5. Methodology and data to estimate bank efficiency and bank risk in China 6. Empirical results on bank efficiency and bank risk in China 7. Summary of the findings, Policy implications for Chinese banking sector, Limitations of the book and further studies