| The development of information technology has deeply promoted the transformation and development of traditional banking industry,and has changed banks' delivering channels and competition modes.Banks has two marketing channels: one is online channel,such as online banking,mobile banking;the other is traditional physical branch channel.These two banking channels are interchangeable and have profound impact on banks' development strategy.With the rapid development of online banking over the world,more and more commercial banks begin to adopt online banking as one of the most important channels to offer banking services.The innovation of banks' delivery channels,which is represented by online banking,has brought huge changes to the operation and competition mode of the traditional banking industry and has a profound impact on banks' performance.Since 1990 s,online banking has become a popular delivery channel of banks.As an important channel of traditional banking,bank branches are also impacted by online banking channels.To investigate the nexus between online bnaking and bank performance as well as the relation between online channel and physical branch channel,this dissertation explores the determinants of online channel adoption,the impacts of online channel as well as geographical diversification on bank performance,and the nexus between online channel and physical branch channel.In this study,we use modern economic theories and methodologies to estimate the efficiency models which can measure bank performance and investigate the impact of online channel innovation on bank performance.This dissertation includes four sections to study different aspects of the study.In the first section,we construct a theory model to depict the decision process of online banking adoption and the determinants of online channel adoption.The theory model compares the difference of online channel adoption between large national bank and small regional bank and analyzes the determinants of online banking adoption theoretically.To verify the predictions of the theory model,we conduct a series of empirical models,such as Logit model and ordered Logit model,to validate the theory model with the Chinese banking industry data.The research finds that large national banks are more likely to adopt online banking earlier than small regional banks,and banks' online banking adoption can be motivated by having copetitors that have already adopted this technology.The theory and empirical results also find evidence that online banking channel is a substitute for physical branches.This section investigates the factors that affect electronic banking channel adoption,which is important theoretically and practically.In the second section,the study analyzes the impact of online banking channel on banks' efficiencies and risks.This section estimates banks' profit efficiency,cost efficiency,interest income efficiency,and non-interest income efficiency with Stochastic Frontier Analysis(SFA)method.We choose four efficiencies as the indicators which measure banks' operation efficiency.In addition,this section also includes a bunch of risk measures,such as Z-score,capital adequacy ratio,non-performed loan ratio,and liquidity ratio as indicators which measure banks' insolvency risk,capital adequacy risk,credit risk,and liquidity risk respectively.We investigate the effects of online banking on bank risks empirically.This section investigates the impacts of online channel on bank performance with control function method.The empirical results show that online banking can improve banks profit efficieny albeit online channel can decrease banks' cost efficiency and improve non-interest income efficiency.The improvement of profit efficiency is driven by the increase of non-interest income efficiency.When it comes to the risk management,online banking will lower the quality of loans and increase the insolvency risk.The research of this part contributes to the literature in electronic banking and bank performance and provides the transmission mechanism.In the third section,the disseertation studies the distribution of Chinese banking physical branches as well as geographic expansion modes and features of different types of Chinese banks.This section also investigates the factors that influence banks' decision of geographic expansion empirically.The empirical results indicate that state-owned commercial banks,joint-stock commercial banks,city commercial banks and rural commercial banks have huge differences in geographic expansion strategies.In addition,banks' asset scale,culture similarity of bank headquarter city and geographic expansion cities,geographic distance,branch numbers in nearby cities,competition level of cities have an significant impact on banks' geographic expansion.The fourth section investigates the nexus between bank geographic expansion and bank performances.This section studies the impact of geographic expansion on bank performance theoretically and empirically,and investigates the effects of the adoption of online banking on geographic diversification.The empirical results find that geographic expansion can bring about the decrease of bank profit efficiency and interest income efficiency but can lead to the improvement of cost efficiency.The results show no significant nexus between geographic expansion and bank revenue and risks.What's more,the adoption of online banking will reduce the intensity of geographic expansion and decrease branch density.Based on the research of this dissertation,some policy suggestions have been proposed: First,bank managers should pay attention to the role of online banking channel in the future development of banking industry.Second,both policy makers and regulators need to lay emphasis on the risks of online banking channel and be on guard against online channel risks.Third,banks should pay more attention on the integration of online channel and physical branch channel. |
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