[Journal:] The Open Economics Journal [ISSN:] 1874-9194 [Publisher:] Bentham Open [Place:] Sharjah [Volume:] 1 [Year:] 2008 [Pages:] 14-24
More than half of the assets in China's banking system are accounted for by four huge state-owned commercial banks. This paper examines the changing factors influencing these banks' lending behavior over the post-1994 period on a province-by-province basis. Determinants include the concentration of state-owned enterprises, the level of provincial prosperity, deposit levels, and macroeconomic control variables. We confirm a downward trend in the banks' loan-todeposit ratio combined with some (mixed) evidence of more lending to richer provinces over time. SOE lending remained important for at least one of the four banks.
Chinese banks lending state-owned enterprises provincial income privatization World Trade Organization