The Effects Of Ownership Structure And Listed Status On Bank Risk In China

Abstract

This paper investigates the relationship of ownership structure, listed status and risk by using regression analysis based on the relevant data of China’s commercial banks. Three main results emerge. First, compared to the state-owned banks, foreign-owned commercial banks exhibit better asset quality, lower credit risk and higher capital adequacy ratio; city commercial banks have lower credit risk and joint-stock commercial banks have lower credit risk and capital adequacy ratio. Second, listed status improves the asset quality and capital adequacy ratio. Finally, we also find that the listed status significantly moderates the relationship between ownership structure and risk. In conclusion, this study provides a theoretical reference for the reform of China’s commercial banks.