A Research on the Evolution Mechanism of Banking’s Capital Efficiency in China under the Process of Marketization
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A Research on the Evolution Mechanism of Banking’s Capital Efficiency in China under the Process of Marketization
LI Qiang1, LIU Meng-fei1,2
(1.School of Finance and Economics, Xi’an Jiaotong University, Xi’an Shaanxi 710061 China; 2.School of Economics and Management, Northwest A & F University, Yangling Shaanxi 712100 China)
Abstract By stochastic frontier analysis, this paper examines the evolution of commercial banks capital efficiency in China under the market-oriented reform process in aspect of the market structure, corporate governance structure and macroeconomic environment. It is found that the capital efficiency of China’s commercial banks show no obvious upward trend with banking marketization. Market deregulation in the short term has a negative impact to the banking sector capital efficiency. The positive role of governance mechanisms have yet to be strengthened. It is proposed that China’s banking industy improve the corporate governance mechanism by establishing a fair and orderly competition environment for the further reform.
LI Jiang,LIU Meng-Fei. A Research on the Evolution Mechanism of Banking’s Capital Efficiency in China under the Process of Marketization. Economic Survey, 2012, 1(6): 0161.
2012, Vol. 1 
