SHADOW PRICES OF NONPERFORMING LOANS AND THE TECHNICAL EFFICIENCY OF CHINESE BANKS

Chen Wu, Southeast Missouri State University, Cape Girardeau, MO, U.S.A.
William L. Weber, Southeast Missouri State University, Cape Girardeau, MO, U.S.A.
Hongnai Zhang, Southeast Missouri State University, Cape Girardeau, MO, U.S.A.

Published in

JOURNAL OF ACADEMY OF BUSINESS AND ECONOMICS
Volume 18, Issue 3, p53-62, October 2018

ABSTRACT

This paper uses the directional output distance function (Fukuyama et al. 2015) with nonperforming loans as an undesirable output to investigate the technical efficiency of 51 Chinese banks over the period 2007 - 2016. Contrary to many studies in the literature our results show that the city commercial banks have the highest efficiency for all years although they all exhibit technological regress after 2011. Surprisingly, the average charge on the nonperforming loans is low, with state-owned banks incurring the highest charge and city commercial banks paying the lowest charge.

Keywords

Nonperforming loans, Technical efficiency, Directional output function, Chinese banks.


About the Article

Abstract, Keywords, Page Numbers, etc

About the Journal

Managing Editors, Indexing, Best Practices

About The Publisher

History, Partners, Conferences

Access the Full Article

Log-in to IABE to access full article

Search IABE

Search IABE's articles by Title, Author, or keyword

Contact Us

Send a message to IABE