A Comprehensive Analysis of the Effects of Capital Regulation and Heterogeneity on Bank Efficiency | Proceedings of Business and Economic Studies

<!DOCTYPE html> <html lang="en-US" xml:lang="en-US"> <head> <meta charset="utf-8"> <meta name="viewport" content="width=device-width, initial-scale=1.0"> <title> A Comprehensive Analysis of the Effects of Capital Regulation and Heterogeneity on Bank Efficiency | Proceedings of Business and Economic Studies </title> <meta name="generator" content="Open Journal Systems 3.1.2.0"> <meta name="gs_meta_revision" content="1.1"/> <meta name="citation_journal_title" content="Proceedings of Business and Economic Studies"/> <meta name="citation_journal_abbrev" content="1"/> <meta name="citation_issn" content="2209-265X"/> <meta name="citation_author" content="Jingwen Xu"/> <meta name="citation_author_institution" content="School of Finance, Harbin University of Commerce, Harbin 150028, Heilongjiang Province, China"/> <meta name="citation_title" content="A Comprehensive Analysis of the Effects of Capital Regulation and Heterogeneity on Bank Efficiency "/> <meta name="citation_date" content="2021/10/28"/> <meta name="citation_volume" content="4"/> <meta name="citation_issue" content="5"/> <meta name="citation_firstpage" content="111"/> <meta name="citation_lastpage" content="116"/> <meta name="citation_doi" content="10.26689/pbes.v4i5.2639"/> <meta name="citation_abstract_html_url" content="https://ojs.bbwpublisher.com/index.php/PBES/article/view/2639"/> <meta name="citation_language" content="en"/> <meta name="citation_keywords" xml:lang="en" content="Capital regulation"/> <meta name="citation_keywords" xml:lang="en" content="Bank efficiency"/> <meta name="citation_keywords" xml:lang="en" content="Heterogeneity"/> <meta name="citation_pdf_url" content="https://ojs.bbwpublisher.com/index.php/PBES/article/download/2639/2415"/> <link rel="schema.DC" href="http://purl.org/dc/elements/1.1/" /> <meta name="DC.Creator.PersonalName" content="Jingwen Xu"/> <meta name="DC.Date.created" scheme="ISO8601" content="2021-10-28"/> <meta name="DC.Date.dateSubmitted" scheme="ISO8601" content="2021-10-09"/> <meta name="DC.Date.issued" scheme="ISO8601" content="2021-10-31"/> <meta name="DC.Date.modified" scheme="ISO8601" content="2021-10-28"/> <meta name="DC.Description" xml:lang="en" content="This article analyzes the impact of capital regulation on bank efficiency using panel data from 165 commercial banks in China from 2013 to 2019. The results indicate that cost efficiency changes slightly and profit efficiency fluctuates greatly. Under the pressure of capital regulation, the profit efficiency of commercial banks with sufficient capital improves, while profit efficiency of banks with insufficient capital decreases slightly, and the cost efficiency of all commercial banks increases. Based on the heterogeneity analysis of banks, it is found that the cost efficiency and profit efficiency of different types of commercial banks differ significantly in response to capital regulation."/> <meta name="DC.Format" scheme="IMT" content="application/pdf"/> <meta name="DC.Identifier" content="2639"/> <meta name="DC.Identifier.pageNumber" content="111-116"/> <meta name="DC.Identifier.DOI" content="10.26689/pbes.v4i5.2639"/> <meta name="DC.Identifier.URI" content="https://ojs.bbwpublisher.com/index.php/PBES/article/view/2639"/> <meta name="DC.Language" scheme="ISO639-1" content="en"/> <meta name="DC.Rights" content="Copyright (c) 2021 Proceedings of Business and Economic Studies"/> <meta name="DC.Rights" content=""/> <meta name="DC.Source" content="Proceedings of Business and Economic Studies"/> <meta name="DC.Source.ISSN" content="2209-265X"/> <meta name="DC.Source.Issue" content="5"/> <meta name="DC.Source.Volume" content="4"/> <meta name="DC.Source.URI" 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Archives </a> </li> <li class="breadcrumb-item"> <a href="https://ojs.bbwpublisher.com/index.php/PBES/issue/view/256"> Vol 4 No 5 (2021): Proceedings of Business and Economic Studies </a> </li> <li class="breadcrumb-item active" aria-current="page"> Articles </li> </ol> </nav> </div> <div class="container page-article"> <div class="article-details"> <div class="page-header row"> <div class="col-lg article-meta-mobile"> <div class="article-details-issue-section large-screen badge badge-info">Articles</div> <h1 class="article-details-fulltitle" > A Comprehensive Analysis of the Effects of Capital Regulation and Heterogeneity on Bank Efficiency </h1> <div class="authors-string"> <span>Jingwen Xu</span> </div> </div> </div> <div class="row justify-content-md-center" id="mainArticleContent"> <div class="col-lg-3 order-lg-2" id="articleDetailsWrapper"> <div class="article-details-sidebar" id="articleDetails"> <div class="article-details-block article-details-cover"> <a href="https://ojs.bbwpublisher.com/index.php/PBES/issue/view/256"> <img class="img-fluid" src="https://ojs.bbwpublisher.com/public/journals/8/cover_issue_256_en_US.png"> </a> </div> <div class="article-details-block article-details-galleys article-details-galleys-sidebar"> <div class="article-details-galley"> <a class="btn btn-primary" style="margin-top:5px;width:120px;" href="https://ojs.bbwpublisher.com/index.php/PBES/article/view/2639/2415"> Download PDF </a> </div> </div> <form action="https://ojs.bbwpublisher.com/createxml.php" method="post" enctype="multipart/form-data"> <input type="hidden" name="journal" value="Proceedings of Business and Economic Studies" /> <input type="hidden" name="title" value="A Comprehensive Analysis of the Effects of Capital Regulation and Heterogeneity on Bank Efficiency " /> <input type="hidden" name="doi" value="10.26689/pbes.v4i5.2639" /> <input type="hidden" name="aaa" value="Jingwen Xu" /> <input type="hidden" name="ccc" value="Vol 4 No 5 (2021): Proceedings of Business and Economic Studies" /> <div class="weburl" style="display:none" name="weburl" > <input type="hidden" name="weburl" value="https://ojs.bbwpublisher.com/index.php/PBES/article/view?path="> </div> <input type="hidden" name="published" value="2021-11-16" > <input type="hidden" name="auto" value="Jingwen Xu" /> <input type="hidden" name="Keywords" value="Array " /> <div class="keyword" style="display:none" name="keyword"> <input type="hidden" style="display:none" name="keywords" value="Capital regulation,Bank efficiency,Heterogeneity" > </div> <div style="display:none" > $currentUrl="http://$_SERVER[HTTP_HOST]$_SERVER[REQUEST_URI]" <input type="hidden" style="display:none" name="urldom" value="https://ojs.bbwpublisher.com/index.php/PBES/article/view/2639" > </div> <input type="hidden" name="subject" value="Articles" /> <input type="hidden" name="Abstract" value="<p>This article analyzes the impact of capital regulation on bank efficiency using panel data from 165 commercial banks in China from 2013 to 2019. The results indicate that cost efficiency changes slightly and profit efficiency fluctuates greatly. Under the pressure of capital regulation, the profit efficiency of commercial banks with sufficient capital improves, while profit efficiency of banks with insufficient capital decreases slightly, and the cost efficiency of all commercial banks increases. Based on the heterogeneity analysis of banks, it is found that the cost efficiency and profit efficiency of different types of commercial banks differ significantly in response to capital regulation.</p>" /> <input type="hidden" name="References" value="[1] He G, Ma Y, 2020, Research on the Impact of Prudential Supervision on the Operational Efficiency of China’s Commercial Banks: Based on the Perspective of Total Factor Productivity. Finance & Economics, 5: 16-29.<br /> [2] Chortareas GE, Girardone C, Ventouri A, 2012, Bank Supervision, Regulation, and Efficiency: Evidence from the European Union. Journal of Financial Stability, 8(4): 292-302.<br /> [3] Barth JR, Chen L, Yue M, et al., 2013, Do Bank Regulation, Supervision and Monitoring Enhance or Impede Bank Efficiency?. SSRN Electronic Journal, 37(8): 2879-2892.<br /> [4] Ariff M, Luc C, 2008, Cost and Profit Efficiency of Chinese Banks: A Non-Parametric Analysis. China Economic Review, 19(2): 260-273.<br /> [5] Pasiouras F, Tanna S, Zopounidis C, 2009, The Impact of Banking Regulations on Banks’ Cost and Profit Efficiency: Cross-Country Evidence. International Review of Financial Analysis, 18(5): 294-302.<br /> [6] Li Y, Wang MC, 2012, Capital Regulation?Monetary Policy and Asymmetric Effects of Commercial Bank’s Efficiency. Economic Review, 2: 116-126.<br /> [7] Jacques K, Nigro P, 1997, Risk-Based Capital, Portfolio Risk, and Bank Capital: A Simultaneous Equations Approach. Journal of Economics and Business, 49(6): 533-547.<br /> [8] Zhou J, Tao SG, 2019, Does Structural Monetary Policy Affect the Efficiency of Chinese Commercial Banks? Research Based on the Channel of Bank Risk-Taking. China Economic Studies, 3: 25-39." /> <input type="hidden" name="Online" value="2209-265X" /> <input type="hidden" name="Print" value="2209-2641" /> <input class="btn btn-primary" type="submit" value="xml" style="border:none;width:120px;height:34px;background-color:#337ab7;border-color:#2e6da4;color:#fff;margin-top:5px;" /> </form> <div class="article-details-block article-details-keywords"> <h2 class="article-details-heading"> Keywords </h2> <div class="article-details-keywords-value"> <span>Capital regulation</span><br> <span>Bank efficiency</span><br> <span>Heterogeneity</span> </div> </div> <div class="article-details-block article-details-doi"> <h2 class="article-details-heading"> DOI </h2> <p><a href="https://doi.org/10.26689/pbes.v4i5.2639">10.26689/pbes.v4i5.2639</a></p> </div> <h5 class="published">Submitted : 2021-10-17</h5> <h5 class="published">Accepted : 2021-11-01</h5> <h5 class="published">Published : 2021-11-16</h5> </div> </div> <div class="col-lg-9 order-lg-1" id="articleMainWrapper"> <div class="article-details-main" id="articleMain"> <div class="article-details-block article-details-abstract"> <h2 class="article-details-heading">Abstract</h2> <p>This article analyzes the impact of capital regulation on bank efficiency using panel data from 165 commercial banks in China from 2013 to 2019. The results indicate that cost efficiency changes slightly and profit efficiency fluctuates greatly. Under the pressure of capital regulation, the profit efficiency of commercial banks with sufficient capital improves, while profit efficiency of banks with insufficient capital decreases slightly, and the cost efficiency of all commercial banks increases. Based on the heterogeneity analysis of banks, it is found that the cost efficiency and profit efficiency of different types of commercial banks differ significantly in response to capital regulation.</p> </div> <div class="article-details-block article-details-references"> <h2 class="article-details-heading"> References </h2> <div class="article-details-references-value"> <p>He G, Ma Y, 2020, Research on the Impact of Prudential Supervision on the Operational Efficiency of China’s Commercial Banks: Based on the Perspective of Total Factor Productivity. Finance & Economics, 5: 16-29.</p> <p>Chortareas GE, Girardone C, Ventouri A, 2012, Bank Supervision, Regulation, and Efficiency: Evidence from the European Union. Journal of Financial Stability, 8(4): 292-302.</p> <p>Barth JR, Chen L, Yue M, et al., 2013, Do Bank Regulation, Supervision and Monitoring Enhance or Impede Bank Efficiency?. SSRN Electronic Journal, 37(8): 2879-2892.</p> <p>Ariff M, Luc C, 2008, Cost and Profit Efficiency of Chinese Banks: A Non-Parametric Analysis. China Economic Review, 19(2): 260-273.</p> <p>Pasiouras F, Tanna S, Zopounidis C, 2009, The Impact of Banking Regulations on Banks’ Cost and Profit Efficiency: Cross-Country Evidence. International Review of Financial Analysis, 18(5): 294-302.</p> <p>Li Y, Wang MC, 2012, Capital Regulation?Monetary Policy and Asymmetric Effects of Commercial Bank’s Efficiency. Economic Review, 2: 116-126.</p> <p>Jacques K, Nigro P, 1997, Risk-Based Capital, Portfolio Risk, and Bank Capital: A Simultaneous Equations Approach. Journal of Economics and Business, 49(6): 533-547.</p> <p>Zhou J, Tao SG, 2019, Does Structural Monetary Policy Affect the Efficiency of Chinese Commercial Banks? Research Based on the Channel of Bank Risk-Taking. China Economic Studies, 3: 25-39.</p> </div> </div> </div> </div> <div class="col-lg-12 order-lg-3 article-footer-hook"> </div> </div> </div> </div> <footer class="site-footer container"> <div class="row"> <div class="col-md-6"> <a href="/"> <img class="footer-brand-image" alt="BBW Logo" src="https://ojs.bbwpublisher.com/plugins/themes/default/templates/images/logo.png"> </a> <div class="journal-desc"> </div> </div> <div class="col-md-6"> <h3>Proceedings of Business and Economic Studies</h3> <p> ISSN: 2209-265X </p> <h4>Publishing Office:</h4> <p>Level 10, 50 Clarence Street Sydney, NSW 2000 Australia.</p> <h4>Editorial Office:</h4>  <p>34-2B, Jalan Puteri 1/2, Bandar Puteri, 47100 Puchong, Selangor, Malaysia.</p> <h4>Website:</h4> <p><a href="https://www.bbwpublisher.com">www.bbwpublisher.com</a></p> <h4>Email:</h4> <p><a href="mailto:se.gao@bbwpublisher.com">se.gao@bbwpublisher.com</a></p> </div> </div> <hr> <div class="text-center"> Copyright © 2024 Bio-Byword Scientific Publishing Pty. 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A Comprehensive Analysis of the Effects of Capital Regulation and Heterogeneity on Bank Efficiency | Proceedings of Business and Economic Studies