Growth with Emerging Financial Center: Foreign Banks in Shanghai
China opened its domestic banking market in December 2006 and allowed foreign banks to conduct the local currency business without geographic and customer restrictions. This study, using parametric distance functions and nonparametric Data Envelopment Analysis (DEA) models, examines the efficiency level of foreign banks in Shanghai over the period of 2007-2009. The findings suggest that the foreign banks on the whole are less efficient than the Big Four branches, as well as other domestic banks operating in Shanghai, reflecting the challenges of rising input costs, access to sufficient liquidity and promotion of innovative products and services. There is a need for the Chinese authorities to deepen financial reform and speed up financial innovations if China wants to benefit more from the presence of foreign banks in its banking system, in which foreign banks are still playing a very limited role.
Foreign Bank Efficiency Data Envelopment Analysis Distance China
XU Lilai YU Su AN Hui
School of Economics, Finance and Marketing, RMIT University, Melbourne, Australia,3000 School of Economics, Dalian University of Technology, Dalian, China, 116024
国际会议
大连
英文
245-254
2012-07-07（万方平台首次上网日期，不代表论文的发表时间）