Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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The Effect of the Bilateral Expansion of Korean & Chinese Banks on Bank Performance

한·중은행의 상호진출이 경영성과에 미치는 영향

  • Pan, Qi-Xin (Department of Accounting, Kangwon National University) ;
  • Byun, Hae-Young (Department of Accounting, Kangwon National University)
  • 반기신 (강원대학교 경영회계학부) ;
  • 변혜영 (강원대학교 경영회계학부)
  • Received : 2018.02.28
  • Accepted : 2018.03.28
  • Published : 2018.03.30
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Abstract

This paper studies the influence of the bilateral expansion of Korean and Chinese banks on performance. To conduct the empirical analysis, we select eleven Banks in South Korea and thirteen Banks in China over the 2000-2014 time frame. The main regression results are as followed. First, the sample bank's overseas subsidiaries have a significant effect on profitability and the profitability is somewhat deteriorates. Second, the sample bank's overseas branch and subsidiaries have a significant effect on the bank's risk. That is, the loan loss provision ratio is slightly increased but impaired loan ratio is highly decreased. Third, the sample banks' overseas branch and subsidiaries also have a significant effect on bank efficiency. The ratio of customer deposits per employee worsens somewhat but the gross loan per employee are increased. In conclusion, as time passes, bank profitability or efficiency from mutual expansion of Korean banks and Chinese banks seem to be improving somewhat, and this phenomenon is more prominent at Korean banks than at Chinese banks.

Keywords

References

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