Abstract
Along with China’s accession to the WTO, a series of policies were implemented to open up the domestic market for foreign competition. Their entrance have posed increased pressure on the profitability of domestic banks, forcing them to enhance operational efficiency and service quality. To understand the impact of the penetration of foreign bank branch networks on the performance of Chinese commercial banks, a two-step Generalized Method of Moments (GMM) will be applied in this study.
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