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Impact of shadow banking on Chinese banks’ efficiency: The moderating effect of ownership
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Fakarudin Kamarudin ,
Bany Ariffin Amin Noordin,
Lau Wei Theng,
Tim Zhou
Finance Research Letters, Volume: 83, Start page: 107682
Swansea University Author:
Tim Zhou
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DOI (Published version): 10.1016/j.frl.2025.107682
Abstract
This study examines the effect of shadow banking on the efficiency of Chinese banks and how ownership status moderates the relationship. It measures the technical efficiency score of a sample consisting of 160 Chinese commercial banks from 2011 to 2022 using data envelopment analysis via an intermed...
| Published in: | Finance Research Letters |
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| ISSN: | 1544-6123 1544-6131 |
| Published: |
Elsevier BV
2025
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| Online Access: |
Check full text
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| URI: | https://cronfa.swan.ac.uk/Record/cronfa69621 |
| Abstract: |
This study examines the effect of shadow banking on the efficiency of Chinese banks and how ownership status moderates the relationship. It measures the technical efficiency score of a sample consisting of 160 Chinese commercial banks from 2011 to 2022 using data envelopment analysis via an intermediary approach. Using the ordinary least squares, feasible generalized least squares, and panel-corrected standard error estimation methods, the findings demonstrate that shadow banking significantly and positively affects bank efficiency for all banks in the sample. Furthermore, while foreign ownership strengthens this relationship, the inverse is true for joint-stock and city commercial banks. However, state-owned banks and rural commercial banks show insignificant moderating effects. |
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| Keywords: |
Shadow banking; Technical efficiency; Bank ownership; Moderating effect |
| College: |
Faculty of Humanities and Social Sciences |
| Start Page: |
107682 |