Comparison of Bank Profitability in China and the USA

作     者：Ning Ding Hung-Gay Fung Jingyi Jia 

作者机构：Professor School of Finance Dongbei University of Finance and Economics Dalian China. Dr Y. S. Tsiang Professor of Chinese Studies Collegeof Business Administration University of Missouri-St. Louis St. Louis USA[ Associate Professor School of Business Southern Illinois University at Edwardsville EdwardsvilleUSA 

出 版 物：《China & World Economy》 (中国与世界经济（英文版）)

年 卷 期：2017年第25卷第1期

页      面：90-108页

核心收录：

学科分类：11[军事学] 0202[经济学-应用经济学] 1202[管理学-工商管理] 0201[经济学-理论经济学] 0701[理学-数学] 

基　　金：Ning Ding acknowledges financial support for this paper from the China National Social Science Foundation Grant No. 14BJY173 （the project topic is Research on Risk Management and Supervision of Shadow Banking under the Interest Rate Liberalization Reforms） and the financial support from the Central Govement to the Local Higher Education （Grant No. DUFE2015GY09）. 

主　　题：bank profitability efficiency real estate loans shadow banking E44 G28 

摘      要：This paper examines and compares the profitability of banks in the USA and China. The USA has the largest market-based banking system and the financial system of China is still bank-based. Our analysis indicates that in terms of profitability, banks in China outperformed those in the USA during our study period (2008–2014). Real estate loans had an adverse effect on US bank profitability during the financial crisis and no effect after the crisis but consistently improved the profitability of Chinese banks. Interest margins have no effect on US bank profitability but a consistently positive effect on Chinese banks, confirming that China is a traditional bank-based economy. Interbank loans have a positive and significant effect on Chinese bank profitability, while interbank domestic loans have a negative effect on US bank profitability. Finally, size had a positive effect on US banks after the financial crisis period, confirming the scale economies of large US banks, but a negative effect on Chinese banks, indicating diseconomies of scale.