Research from Peter the Great St. Petersburg Polytechnic University Broadens Understanding of Risk Management (The Determinants of Profitability in the City Commercial Banks: Case of China): Insurance – Risk Management

2023 MAR 27 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on risk management. According to news reporting from St. Petersburg, Russia, by NewsRx journalists, research stated, “This study uses a panel data regression model to investigate how internal and external factors affect the profitability of city commercial banks in China.”

Funders for this research include Development of A Methodology For Instrumental Base Formation For Analysis And Modeling of The Spatial Socio-economic Development of Systems Based on Internal Reserves in The Context of Digitalization.

Our news reporters obtained a quote from the research from Peter the Great St. Petersburg Polytechnic University: “The research sample consists of 16 listed city commercial banks with an unbalanced dataset covering the time period within the period of 2008-2020. A panel data regression method is utilized to investigate the factors that influence the profitability of city commercial banks in China. There are several estimation methods in panel data, and the most commonly employed models are the fixed effects and random effects models. The pooled OLS model is often used for comparison for panel data regression, and the appropriate model will be determined by statistical hypothesis testing.”

According to the news editors, the research concluded: “The results show that internal explanatory variables such as bank size, capital adequacy, credit quality, and operating efficiency and external explanatory variables such as province GDP and inflation have a significant impact on the profitability of city commercial banks, while liquidity has no significant effect on the bank’s profitability. The paper contributes to the relevant literature by identifying the determinants of city commercial banks’ profitability considering the latest situation of the banking sector in China and provides practical implications from the perspective of improving bank profitability, which are important for both banking management and regulators and for the municipal and state.”

For more information on this research see: The Determinants of Profitability in the City Commercial Banks: Case of China. Risks, 2023,11(3). (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks11030053.

Our news journalists report that more information may be obtained by contacting Shawuya Jigeer, Graduate School of Industrial Economics, Peter the Great St. Petersburg Polytechnic University, 195251 St. Petersburg, Russia. Additional authors for this research include Ekaterina Koroleva.

ORCID is an identifier for authors and includes bibliographic information. The following is ORCID information for the authors of this research: Shawuya Jigeer (http://orcid.org/0000-0003-3610-0460), Ekaterina Koroleva (http://orcid.org/0000-0003-2640-5906).

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