The determinants of bank profitability: does the category of bank matter in China?

Abstract

In recent years, there was an important reform in China’s banking system during the developing process, which made the major commercial banks at home and abroad partially privatize. This paper used the panel data of banks over 2010-2018 period, investigated the influence of bank ownership towards bank performance, which was defined as profitability. In this study, researcher paid a specific attention on state-owned commercial banks (SOCBs) and foreign ownership. The Big-Five Commercial banks were chosen as the state-owned commercial banks. Also, some internal and external factors were also explored related to the bank profitability. Through the analysis to the data, results of the research which illustrated the relationship between ownership and bank profitability were given.