Skip to main content
SpringerLink
Log in

Simulation Study on the Development of Chinese Bank Industry Based on System Dynamics

  • Conference paper
  • First Online:
Simulation Tools and Techniques (SIMUtools 2020)

Included in the following conference series:

  • 831 Accesses

Abstract

There are many factors influencing the development of the bank industry, and scholars have paid much attention to the influence of these factors on the development of the bank industry. In order to better promoting the healthy and steady development of China’s bank industry, studying the influence of the factors on the development of the bank industry, this paper uses Vensim PLE software to build a simulation model for the development of the bank industry. This paper simulates and analyzes the impact of the changes in money supply and supervision level on the profit level of the bank industry. The simulation results show that the profit level of the bank industry will increase when the money supply is reduced. Higher levels of regulation make banks less profitable. The simulation results also show that the change of money supply has no obvious effect on the nonperforming loan balance.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  1. Lu, M.F., Zhou, J.Y.: A review of the development footprint of Chinese banking industry over the past 70 years and a study of future trends. J. Univ. Jinan (Soc. Sci. Edn.) 29(4), 5–19+157 (2019)

    Google Scholar 

  2. Shu, H.T., Cao, L.K.: An overview of the development and evolution of China’s corporate financing policy – from the perspective of 40 years of reform and opening up. Enterp. Econ. 12, 41–47 (2018)

    Google Scholar 

  3. Li, M.H., Liu, L.Y., Sun, S.: Is it good for banks to develop non-interest businesses? – Based on the empirical analysis of china’s banking industry. Stud. Int. Finan. 11, 11–22 (2014)

    Google Scholar 

  4. Qiu, Z.X., Liu, H., An, S.Y.: On the impact of administrative monopoly on Chinese banking market structure. J. Finan. Res. 2, 175–191 (2015)

    Google Scholar 

  5. Peng, J.G., Wang, S.J., Guan, T.Y.: Does interest rate liberalization narrow interest margins of commercial bank? Empirical evidence based on Chinese banking industry. J. Finan. Res. 7, 48–63 (2016)

    Google Scholar 

  6. Gu, H.F., Yang, L.X.: Monetary policy, bank size differences and credit transmission characteristics: evidence from China’s banking industry in 2006–2015. Stud. Int. Finan. 12, 53–64 (2017)

    Google Scholar 

  7. Dong, N., Fu, L., Xu, S.: The impact of direct financing on the franchise value of China’s banking industry: an empirical study based on Panzar-Rosse model. Stud. Int. Finan. 6, 65–74 (2017)

    Google Scholar 

  8. Meng, C., Yang, X.C.: Market concentration changes and performances of China’s banking industry. Rev. Ind. Econ. 1, 87–100 (2017)

    Google Scholar 

  9. Wang, Y., Shi, Y.D.: Heterogeneity of technological finance nurturing banks—empirical evidence from China’s regional banks. Stud. Sci. Sci. 35(12), 1821–1831 (2017)

    Google Scholar 

  10. Jiang, H., Huang, M.: The impact of debt structure on bank risk-taking: an empirical study based on China’s listed banks. Stud. Int. Finan. 7, 54–65 (2017)

    Google Scholar 

  11. Jiang, H.S., Fei, X.: The impact of asset securitization on bank credit channels—based on the panel data of European banking industry. Finan. Econ. 9, 12–26 (2017)

    Google Scholar 

  12. Guo, Y., Zhao, J.: Deposit competition, shadow banking and bank systemic risk: evidence from the listed banks in China. J. Finan. Res. 6, 81–94 (2017)

    Google Scholar 

  13. Wang, J.B., Li, B.: Empirical study on the effects of China’s monetary policy on risk taking behaviors of commercial banks. J. World Econ. 40(1), 25–43 (2017)

    Google Scholar 

  14. Yao, S.Ã.: Bank development and human development in WAEMU countries: evidence from panel data estimation. Int. J. World Policy Dev. Stud. 4(6), 50–59 (2018)

    Google Scholar 

  15. Zhu, N., Liang, L., Shen, Z.Y., et al.: Endogenous efficiency of Chinese commercial banks and its decomposition under the China’s new normal economy. J. Finan. Res. 7, 108–123 (2018)

    Google Scholar 

  16. Fang, Y., Chen, M., Yang, P.P.: The spillover effect and channel identification of financial market to banking systemic risk. Nankai Econ. Stud. 5, 58–75 (2018)

    Google Scholar 

  17. Yang, K.S., Liu, R.X., Feng, Q.: The impact and countermeasures of the finalisation of Basel III. J. Finan. Res. 2, 30–44 (2018)

    Google Scholar 

  18. Wang, L.J.: A study on deleveraging and the stability of banking system – based on the empirical evidence of China’s banking industry. Stud. Int. Finan. 10, 55–64 (2018)

    Google Scholar 

  19. Shen, C., Zhao, S.M.: The study on the impact of market competition degree and non-interest income on bank returns. Nankai Econ. Stud. 1, 50–66 (2018)

    Google Scholar 

  20. Li, S.F.: The impact of bank regulation and supervision on competition: evidence from emerging economies. Emerg. Mark. Finan. Trade 55(10), 2334–2364 (2019)

    Article  Google Scholar 

  21. Gao, B., Li, Y., Li, M.: Analysis of residential mortgage loan and bank risk: empirical evidence from China’s commercial banks. Ind. Econ. Res. 4, 101–112 (2019)

    Google Scholar 

  22. Li, J.: Can asset securitization ease bank credit risk? – Empirical evidence from China’s banking sector. Stud. Int. Finan. 6, 57–66 (2019)

    Google Scholar 

  23. Zhang, D.Y., Zhang, Z.W.: An empirical study based on regional commercial banks in China. J. Finan. Res. 4, 111–129 (2019)

    Google Scholar 

  24. Su, Q., Meng, N.N.: How does local government intervention affect regional financial inclusion? – Spatial econometric analysis based on provincial panel data. Stud. Int. Finan. 8, 14–24 (2019)

    Google Scholar 

  25. Wang, X.B., Xu, Q.Y., Xin, F.F.: Empirical study on the impact of deposit insurance system on commercial banks’ interest rate risk. J. Manage. Sci. China 22(5), 110–126 (2019)

    Google Scholar 

  26. Tian, Y.H., Govindan, K., Zhu, Q.H.: A system dynamics model based on evolutionary game theory for Green supply chain management diffusion among Chinese manufacturers. J. Clean. Prod. 80(1), 96–105 (2014)

    Article  Google Scholar 

  27. Sana, S.S., Ferro-Correa, J., Quintero, A., et al.: A system dynamics model of financial flow in supply chains: a case study. RAIRO-Oper. Res. 52(1), 187–204 (2018)

    Article  MathSciNet  MATH  Google Scholar 

  28. Rebs, T., Thiel, D., Brandenburg, M., et al.: Impacts of stakeholder influences and dynamic capabilities on the sustainability performance of supply chains: a system dynamics model. J. Bus. Econ. 89(7), 893–926 (2019)

    Google Scholar 

  29. Liu, C., Xu, F.H., Lu, Y.: Multi-target interactions of monetary policy based on system dynamics. Syst. Eng. 33(4), 82–91 (2015)

    Google Scholar 

  30. Dong, Z., Li, X.T., Dong, J.C.: Simulation of financing structure based on system dynamics. Syst. Eng. Theor. Pract. 36(5), 1109–1117 (2016)

    Google Scholar 

  31. Li, Z.M., Zhong, C.L., Liu, J.J., et al.: A simulation study of the development of China’s trust industry based on system dynamics. Manage. Rev. 30(4), 3–11 (2018)

    Google Scholar 

  32. Zhong, Y.G., Xia, X.J., Qian, Y., et al.: System Dynamics. 2th Edition. Science Press, Beijing (2015)

    Google Scholar 

  33. Tan, R.Y.: An empirical study on the relationship between financial development and economic growth in China. Econ. Res. J. 10, 53–61 (1999)

    Google Scholar 

  34. Sun, J., He, C.: Internet finance innovation and traditional bank transformation based on big data. Finan. Econ. 1, 11–16 (2015)

    Google Scholar 

  35. Ge, Z.Q.: Bank mergers and acquisitions, the growth of commercial banks and the development of China’s banking industry. Stud. Int. Finan. 2, 30–36 (2005)

    Google Scholar 

  36. Zheng, R.N., Niu, M.H.: A study on the relationship between non-interest business and bank characteristics in China’s banking industry. J. Finan. Res. 9, 129–137 (2007)

    Google Scholar 

  37. Li, L., Suo, Y.F.: Economic volatility, non-performing loans and systemic risks in the banking sector. Stud. Int. Finan. 6, 55–63 (2009)

    Google Scholar 

  38. Rose, P.S., Hudgins, S.C.: ANK Management and Financial Services, 8th edn. China Machine Press, Beijing (2013)

    Google Scholar 

  39. Jin, P.H., Zhang, X., Gao, F.: The effect of monetary policy on bank risk taking: from the banking industry perspective. J. Finan. Res. 2, 16–29 (2014)

    Google Scholar 

  40. Liu, W.J.: The Construction of System Dynamics Model of Financial Efficiency from the Perspective of Capital Running. Ocean University of China, Qingdao (2011)

    Google Scholar 

  41. Wang, G.G.: 70 years of banking in China: brief history, main features and historical experience. Manage. World 35(7), 15–25 (2019)

    Google Scholar 

  42. Zhao, B.G., Gou, J.K.: Network hatred: obstruction and decomposition of order construction in virtual public domain. J. Beijing Univ. Posts Telecommun. (Soc. Sci. Edn.) 17(4), 41–49 (2015)

    Google Scholar 

Download references

Acknowledgments

This paper was supported by Guizhou Key Laboratory of Big Data Statistics Analysis (No. Guizhou Science and Technology Cooperation Platform Talent [2019] 5103).

Author information

Authors and Affiliations

  1. Guizhou Key Laboratory of Big Data Statistical Analysis, Guizhou University of Finance and Economics, Guiyang, 550025, Guizhou, China

    Cheng Gang Li

  2. School of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang, 550025, Guizhou, China

    Cheng Gang Li & Xin Tong Zuo

Authors
  1. Cheng Gang Li
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Xin Tong Zuo
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Embry-Riddle Aeronautical University, Daytona Beach, FL, USA

    Houbing Song

  2. School of Astronautics and Aeronautic, UESTC, Chengdu, China

    Dingde Jiang

Rights and permissions

Reprints and permissions

Copyright information

© 2021 ICST Institute for Computer Sciences, Social Informatics and Telecommunications Engineering

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Li, C.G., Zuo, X.T. (2021). Simulation Study on the Development of Chinese Bank Industry Based on System Dynamics. In: Song, H., Jiang, D. (eds) Simulation Tools and Techniques. SIMUtools 2020. Lecture Notes of the Institute for Computer Sciences, Social Informatics and Telecommunications Engineering, vol 369. Springer, Cham. https://doi.org/10.1007/978-3-030-72792-5_35

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-72792-5_35

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-72791-8

  • Online ISBN: 978-3-030-72792-5

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics

Search

Navigation