Applying Data Envelopment Analysis in Measuring the Efficiency of Chinese Listed Banks in the Context of Macroprudential Framework
China is a bank-dominated country; therefore, the sustainability of the Chinese banking industry is important for economic development. In this paper, data envelopment analysis (DEA) was combined with the Malmquist index, and we statically and dynamically analyzed the efficiency of listed banks duri...
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| Format: | Article |
| Language: | English |
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MDPI AG
2018-09-01
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| Series: | Mathematics |
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| Online Access: | http://www.mdpi.com/2227-7390/6/10/184 |
| _version_ | 1819112389226790912 |
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| author | Huichen Jiang Yifan He |
| author_facet | Huichen Jiang Yifan He |
| author_sort | Huichen Jiang |
| collection | DOAJ |
| description | China is a bank-dominated country; therefore, the sustainability of the Chinese banking industry is important for economic development. In this paper, data envelopment analysis (DEA) was combined with the Malmquist index, and we statically and dynamically analyzed the efficiency of listed banks during the period 2012–2017. The results showed that 12 of the 17 banks improved their technical efficiency. The technical efficiency of three banks remained the same, whilst that of two banks had dropped slightly by less than 1.0%. The Chinese government has learned from the lessons of past financial crises to find a way to forestall financial crisis, and implemented macroprudential policy, therefore the banking industry has actively served the real economy and promoted economic development while paying attention to the prevention of financial risks. According to the report of The Banker in 2018, for the first time, the four biggest banks in China topped the list of the Top 1000 World Banks. The research showed that, the Chinese government applied macroprudential framework in the banking supervision, and the listed banks effectively resisted financial risks and realized steady growth. We believe that the macroprudential framework plays a positive role in the economic development and financial stability in China. |
| first_indexed | 2024-12-22T04:12:44Z |
| format | Article |
| id | doaj.art-8140c85e932e406582210d3d31a5fd90 |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-12-22T04:12:44Z |
| publishDate | 2018-09-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-8140c85e932e406582210d3d31a5fd902022-12-21T18:39:29ZengMDPI AGMathematics2227-73902018-09-0161018410.3390/math6100184math6100184Applying Data Envelopment Analysis in Measuring the Efficiency of Chinese Listed Banks in the Context of Macroprudential FrameworkHuichen Jiang0Yifan He1School of Economics and Management, Beihang University, Beijing 100191, ChinaInternational College, Zhengzhou University, Zhengzhou 450052, Henan, ChinaChina is a bank-dominated country; therefore, the sustainability of the Chinese banking industry is important for economic development. In this paper, data envelopment analysis (DEA) was combined with the Malmquist index, and we statically and dynamically analyzed the efficiency of listed banks during the period 2012–2017. The results showed that 12 of the 17 banks improved their technical efficiency. The technical efficiency of three banks remained the same, whilst that of two banks had dropped slightly by less than 1.0%. The Chinese government has learned from the lessons of past financial crises to find a way to forestall financial crisis, and implemented macroprudential policy, therefore the banking industry has actively served the real economy and promoted economic development while paying attention to the prevention of financial risks. According to the report of The Banker in 2018, for the first time, the four biggest banks in China topped the list of the Top 1000 World Banks. The research showed that, the Chinese government applied macroprudential framework in the banking supervision, and the listed banks effectively resisted financial risks and realized steady growth. We believe that the macroprudential framework plays a positive role in the economic development and financial stability in China.http://www.mdpi.com/2227-7390/6/10/184data envelopment analysis (DEA)efficiencytotal factor productivitylisted banksfinancemacroprudential frameworkfinancial supervisionfinancial risksfinancial stabilityeconomic development |
| spellingShingle | Huichen Jiang Yifan He Applying Data Envelopment Analysis in Measuring the Efficiency of Chinese Listed Banks in the Context of Macroprudential Framework Mathematics data envelopment analysis (DEA) efficiency total factor productivity listed banks finance macroprudential framework financial supervision financial risks financial stability economic development |
| title | Applying Data Envelopment Analysis in Measuring the Efficiency of Chinese Listed Banks in the Context of Macroprudential Framework |
| title_full | Applying Data Envelopment Analysis in Measuring the Efficiency of Chinese Listed Banks in the Context of Macroprudential Framework |
| title_fullStr | Applying Data Envelopment Analysis in Measuring the Efficiency of Chinese Listed Banks in the Context of Macroprudential Framework |
| title_full_unstemmed | Applying Data Envelopment Analysis in Measuring the Efficiency of Chinese Listed Banks in the Context of Macroprudential Framework |
| title_short | Applying Data Envelopment Analysis in Measuring the Efficiency of Chinese Listed Banks in the Context of Macroprudential Framework |
| title_sort | applying data envelopment analysis in measuring the efficiency of chinese listed banks in the context of macroprudential framework |
| topic | data envelopment analysis (DEA) efficiency total factor productivity listed banks finance macroprudential framework financial supervision financial risks financial stability economic development |
| url | http://www.mdpi.com/2227-7390/6/10/184 |
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