dc.description.abstract | From 1991 to 2005, the internal banking industry faces regulation and technology changes, including deregulation of new private banks, privatization, consolidation, and the widespread adoption of new banking technologies. Consolidation in the banking industry has sparked concern about the future of small banks. However, a number of foreign studies argue that small bank advantage hypothesis exists and evidence the influence of deregulation and technology on business lending.
For analyzing the performance of business lending in internal banking industry, we use the regression model of Carter and McNulty(2005)to test the relationship between risk-adjusted business yield, the size of banks, small business lending, and regulation-and-technology changes. Besides that, we consider random effect model to acquire robust results. From both models, the consistent results are as follows. Fist, the returns to business lending have declined over the sample period. Second, size-of-bank and size-of-loan effects exist. Additionally, there is no significant statistic that adjusted-risk business yields of public banks are different from private banks, and the business lending performance of the new banks in 1991 is significantly lower than other banks. | en_US |