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The Impact of Income Diversification on Chinese Banks: Bank Efficiency

  • Zhixian QuEmail author
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Abstract

This chapter examines the efficiency of the Chinese banking sector in relation to banks’ diversification operations. In a two-step approach, the chapter first calculates both cost and profit efficiency scores via stochastic frontier analysis using the method of within maximum likelihood estimation (WMLE). Then, the investigation employs a dynamic Tobit model in order to shed light on the diversification-efficiency nexus in the Chinese banking market.

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© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.China Construction BankBeijingChina

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