Accessibility navigation


The impact of foreign bank penetration on the domestic banking sector: new evidence from China

Luo, D., Dong, Y., Armitage, S. and Hou, W. (2015) The impact of foreign bank penetration on the domestic banking sector: new evidence from China. European Journal of Finance. ISSN 1466-4364

Full text not archived in this repository.

It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing.

To link to this item DOI: 10.1080/1351847X.2014.1003314

Abstract/Summary

This study proposes a foreign bank branch networks index (FBBNI) to capture bank-level exposure to competition from foreign banks in terms of geographical proximity. The index takes account of the rapidly expanding branch networks of both foreign and domestic banks in China. Based on data from a sample of three types of Chinese commercial banks from 2002 to 2011, we find that exposure to the branch networks of foreign banks is associated with improved profitability at domestic banks, higher efficiency, and increased non-interest income, consistent with knowledge transfer from foreign banks. These relationships are most pronounced for joint-stock domestic banks presumably because their ownership structure fosters knowledge transfer.

Item Type:Article
Refereed:Yes
Divisions:Henley Business School > Business Informatics, Systems and Accounting
ID Code:67312
Publisher:Taylor and Francis

University Staff: Request a correction | Centaur Editors: Update this record

Page navigation