Domestic banks' responses to the entry of foreign banks in China
Journal of Chinese Economic and Foreign Trade Studies
ISSN: 1754-4408
Article publication date: 30 September 2013
Abstract
Purpose
This paper examines the effect that foreign bank entry into China had on transaction fees and service fees charged by domestic Chinese banks.
Design/methodology/approach
This paper is an empirical study using financial data for listed Chinese banks collected from the China Stock Market Financial Statement Database.
Findings
This paper finds that domestic banks cut transaction fees and service fees shortly before the entry into China of foreign banks, and domestic banks did not cut transaction fees and service fees after foreign banks entered into China.
Research limitations/implications
This paper does not examine any non-price strategies employed by local Chinese banks in response to the entry of foreign banks.
Originality/value
This is the first study to examine transaction fees and service fees charged by domestic Chinese banks in response to the entry of foreign banks into China.
Keywords
Acknowledgements
The authors gratefully acknowledge the financial support for this research was received from WLU/CA Research Centre. The authors thank participants at the second International Scientific Conference of Economics and Social Development for their helpful comments. The authors also thank the anonymous reviewers for their insight comments and suggestions.
Citation
Lin, H.-C. and Zeng, T. (2013), "Domestic banks' responses to the entry of foreign banks in China", Journal of Chinese Economic and Foreign Trade Studies, Vol. 6 No. 3, pp. 168-177. https://doi.org/10.1108/JCEFTS-03-2013-0008
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited