Bank Competition, Efficiency and Liquidity Creation in Asia Pacific

Banking market integration in the Asia Pacific has greatly accelerated in recent years, in an environment of many other rapid advances in banking and finance. This has increased competition between domestic and foreign banks, and made the measurement of bank efficiency, competition, and liquidity creation a critical issue for both policy makers and bank managers.

This book investigates important policy-related issues in Asia Pacific banking. It analyses the link between competition and stability, examining the cases of fourteen Asia Pacific countries between 2003 and 2010, and goes on to discuss whether bank shareholder value is influenced by cost and profit efficiency changes over time. The authors explore the different ways in which banks in Asia-Pacific create liquidity, and whether this is linked to capital generation. This book provides valuable insight for researchers, policy makers and bank managers with an interest in financial rationalization, restructuring and consolidation.

Professor Xiaoqing (Maggie) Fu is Acting Dean of Graduate School and Associate Professor of Finance at University of Macau.

Professor Yongjia (Rebecca) Lin is Assistant Professor of Finance at Macau University of Science and Technology.

Professor Philip Molyneux is Dean of the College of Business, Law, Education and Social Sciences and Professor of Banking and Finance at Bangor University.