Authors :
Charisa Qudsi
Volume/Issue :
Volume 8 - 2023, Issue 1 - January
Google Scholar :
https://bit.ly/3TmGbDi
Scribd :
https://tinyurl.com/2433zrar
DOI :
https://doi.org/10.5281/zenodo.8054911
Abstract :
Policies before economic reform and
liberalization decades ago made China a stagnant and
impoverished. The opening of China's economic gates to
international trade in the free market reforms of 1979,
made China a developing country with the fastestgrowing economy in the world. The current growth in
total assets and contributions of Chinese financial
institutions cannot be separated from the role of large
banks belonging to the central government and society
as a whole. The estimation technique in this study uses
the Two-Stage Data Envelopment Analysis model. This
model uses 6 cross section data units and 6 time series
data sets. Throughout the study period, all state-owned
commercial banks in China performed efficiently (stage
1). The results of the study (stage 2) show that stateowned commercial banking companies in China tend to
perform efficiently throughout the study period. Based
on the constructed hypothesis construct, of the four
hypotheses, only one hypothesis is statistically accepted.
Chinese government-owned commercial banks can
continue to perform efficiently even during an uncertain
situation, as evidenced in the 2020-2021 research sample
showing that efficiency levels are consistently in the high
category amid the conditions of the Covid-19 pandemic
Keywords :
Bank Efficiency, Capital Adequacy Ratio, Loan to Deposit Rati, Interest Income, Gross Domestic Product, and Data Envelopment Analysis.
Policies before economic reform and
liberalization decades ago made China a stagnant and
impoverished. The opening of China's economic gates to
international trade in the free market reforms of 1979,
made China a developing country with the fastestgrowing economy in the world. The current growth in
total assets and contributions of Chinese financial
institutions cannot be separated from the role of large
banks belonging to the central government and society
as a whole. The estimation technique in this study uses
the Two-Stage Data Envelopment Analysis model. This
model uses 6 cross section data units and 6 time series
data sets. Throughout the study period, all state-owned
commercial banks in China performed efficiently (stage
1). The results of the study (stage 2) show that stateowned commercial banking companies in China tend to
perform efficiently throughout the study period. Based
on the constructed hypothesis construct, of the four
hypotheses, only one hypothesis is statistically accepted.
Chinese government-owned commercial banks can
continue to perform efficiently even during an uncertain
situation, as evidenced in the 2020-2021 research sample
showing that efficiency levels are consistently in the high
category amid the conditions of the Covid-19 pandemic
Keywords :
Bank Efficiency, Capital Adequacy Ratio, Loan to Deposit Rati, Interest Income, Gross Domestic Product, and Data Envelopment Analysis.
