主题：Oil price shocks and Chinese banking performance: Do country risks matter?
主办单位：发展研究院 经济学院 科研处
Chi-Chuan Lee received his PhD in Banking and Financial Market from Chengchi University in 2013 and now serves as an Associate Professor of Management School at Beijing Normal University Zhuhai. He has published many papers in economics and applied finance in leading journals (Journal of International Money and Finance, Energy Economics, Social Indicators Research etc.). He serves as a reviewer for several international SSCI journals and is a member of the Western Economic Association International and Taiwan Efficiency and Productivity Association.
This paper contributes to the existing literature by investigating the impacts of oil prices on bank performance through a broad array of CAMEL (Capital adequacy, Asset quality, Management, Earnings, and Liquidity) indicators in China over the period 2000–2014. To gain further insights into this issue, we also discuss whether the correlations change with different dimensions of country risk, i.e., economic, ﬁnancial, and political, which extant studies ignored. The results reveal that oil prices have a signiﬁcant impact on banking performance, as their increase triggers a reduction in banking performance in terms of capitalization, management efﬁciency, earning power, and liquidity. However, these adverse effects are mitigated by country stability, especially economic stability and political stability. These results are important for policy makers who should be cautious when formulating a strategy for macroeconomic stability. From the managerial perspective, bank managers should consider establishing early warning and response mechanisms on the back of oil price shocks in order to operate under better performance.