Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212783 
Year of Publication: 
2013
Series/Report no.: 
BOFIT Discussion Papers No. 28/2013
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
This paper contributes to the debate on the effect of capital requirements on bank effieciency. We study the relation between capital ratio and bank efficiency for Chinese banks over the period 2004?2009, taking advantage of the profound regulatory changes in capital requirements that occurred during this period to measure the exogenous impact of an in-crease in the capital ratio on banks' cost efficiency. We find that such an increase has a positive effect on cost efficiency, the size of which depends to an extent on the bank's ownership type. Our results therefore suggest that capital requirements can improve bank efficiency.
Subjects: 
bank
capital requirements
efficiency
China
JEL: 
G21
G28
Persistent Identifier of the first edition: 
ISBN: 
978-952-6699-47-9
Document Type: 
Working Paper

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