Research On The Efficiency Of Chinese Commercial Banks Based On Non-parameter Approach

Efficiency is a concentrated embodiment of commercial bank's competition, and it also related to the social optimal allocation of fund. The research of commercial bank's efficiency is good for setting the financial regulation for the Chinese bank supervision authority, is good for Chinese commercial banks to judge the efficiency level distance from other bank and improve their own efficiency level, is good for maintaining the stability and development of financial sector, and it has great significance for economic growth. Therefore, on the basis of existed research, this dissertation studies the efficiency of Chinese commercial banks from the view of static, dynamic, two-stage feature and influencing factors. The main contents of it are as follows:1. Based on the theory of efficiency measurement of commercial banks, this dissertation builds up the efficiency measurement system of Chinese commercial banks. It applies the DEA method to analysis the static efficiency of commercial banks, the result shows that the efficiency of Chinese commercial banks perform better, but there is large individual difference and uneven development. Low scale efficiency leads to invalid overall efficiency of commercial banks, indicating that the commercial banks utilize existing scale ineffectively. Further study reveals that most commercial banks which have invalid scale efficiency are in the state of decreasing returns to scale. This result reveals that commercial banks expand the scale blindly; the increasing investment and expanding scale didn't bring corresponding return, especially the state-owned commercial banks.2. The dissertation employs the TFP Malmquist Index methodology to evaluate the dynamic efficiency of the commercial banks in 2001-2008, and it creatively introduces the frontier shift theory into the efficiency evaluation of commercial banks. The dissertation forward the idea that classified the proposed movement of decision making units into eight possible changes and gives the reasons for them respectively. The result shows that the Talmudist index of commercial banks has been improved and technical progress is the main reason. The frontier is moving forward clearly, and it is in the best state especially in 2006. The results show that Chinese commercial banks have made great progress in advanced technology after adopting the new technology.3. Breaking the operation of commercial bank into two sub-processes of absorbing deposit and providing loan, the dissertation employs two-stage network DEA to analysis the efficiency of gathering and allocating community fund. The result shows that a few commercial banks are valid in both sub-processes. In order to obtain more management enlightenment from the result, the sample banks are divided into four categories by the mean DEA efficiency, and the dissertation gives annual matrix describing banks in the above four state in detail. The results show that the invalid banks can find they shortage from the efficiency of sub-process, the network DEA method can provide managers with more comprehensive information to improve bank's performance and efficiency.4. Using the qualitative method, this dissertation analyses the exogenous factors such as economic environment, economic policy, social credit and industry factors. Because of the DEA estimates is a value of relative efficiency and the maximum is one, so the parameters estimated by ordinary least squares regression will be biased and inconsistent. Using maximum likelihood estimate of Tobit model will consistent with the estimated value, so this dissertation analyses the endogenous factors that affect the technical efficiency, pure technical efficiency and scale efficiency of commercial banks based on the Panel Tobit model. Finally, according to the above conclusion, the dissertation analysis the key pathway to improve the efficiency of Chinese commercial banks and gives the research direction and points in the future.