We investigate ownership effects on capital adjustment in China from 2000 - 2012 and find that state-owned banks hold higher capital than other ownership types. Foreign banks are more highly capitalized than local non-state banks but under-capitalized compared with bigger non-state banks with a...

They do so as a strategy for assets expansion. We find that, relative to the control group, U.S. SEO banks increased not only in their capital ratios but also deposits and assets in the years post-SEO. The newly raised funds are invested mainly in retail loans. The overall risk is increased and...