Impact of shadow banking on Chinese banks’ efficiency: the moderating effect of ownership

Citation

Chen, Jing and Kamarudin, Fakarudin and Amin Noordin, Bany Ariffin and Theng, Lau Wei and Zhou, Tim (2025) Impact of shadow banking on Chinese banks’ efficiency: the moderating effect of ownership. Finance Research Letters, 83. art. no. 107682. ISSN 1544-6123; eISSN: 1544-6131

Abstract

This study examines the effect of shadow banking on the efficiency of Chinese banks and how ownership status moderates the relationship. It measures the technical efficiency score of a sample consisting of 160 Chinese commercial banks from 2011 to 2022 using data envelopment analysis via an intermediary approach. Using the ordinary least squares, feasible generalized least squares, and panel-corrected standard error estimation methods, the findings demonstrate that shadow banking significantly and positively affects bank efficiency for all banks in the sample. Furthermore, while foreign ownership strengthens this relationship, the inverse is true for joint-stock and city commercial banks. However, state-owned banks and rural commercial banks show insignificant moderating effects.

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Additional Metadata

Item Type:	Article
Divisions:	School of Business and Economics
DOI Number:	https://doi.org/10.1016/j.frl.2025.107682
Publisher:	Elsevier
Keywords:	Bank ownership; Moderating effect; Shadow banking; Technical efficiency
Depositing User:	MS. HADIZAH NORDIN
Date Deposited:	16 Feb 2026 06:35
Last Modified:	16 Feb 2026 06:35
Altmetrics:	http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1016/j.frl.2025.107682
URI:	http://psasir.upm.edu.my/id/eprint/120589
Statistic Details:	View Download Statistic

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