Determinants of the Performance of Banks in Hong Kong

  • Jim Wong
  • Tom Pak-Wing Fong
  • Eric Tak-Chuen Wong
  • Ka-Fai Choi
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)


What factors determine the performance of banks in general, and how banks’ profits and pricing behaviours are affected by market structure in particular, have been extensively studied. Amongst the various approaches, a number of studies have focused on the structure–performance relationship of banks, with the structure– conduct–performance (SCP) hypothesis and the efficient-structure (EFS) hypothesis widely tested.2 In general, banks’ profitability and pricing power are hypothesized to be determined by the market structure of the banking industry, such as the number of participating banks in the market and the market shares of banks, and bank-specific factors, such as cost efficiency, scale efficiency, and the risk attitude of banks. Macroeconomic factors, such as real GDP growth and unemployment, may also be important determinants.


Banking Sector Large Bank Scale Efficiency Market Concentration Small Bank 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Jim Wong, Tom Pak-Wing Fong, Eric Tak-Chuen Wong and Ka-Fai Choi 2008

Authors and Affiliations

  • Jim Wong
  • Tom Pak-Wing Fong
  • Eric Tak-Chuen Wong
  • Ka-Fai Choi

There are no affiliations available

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