Study On The Credit Efficiency Of The Government-Owned Commercial Bank

Finance lies at the heart of modern economy, the financial system in China is led by government-owned banks, especially the big 4, which play a pivotal role. As the key business of the government-owned commercial bank (GOCB), credit is the primary channel of transforming deposits into investment. Hence, the realization of credit efficiency not only determines whether or not the GOCB can achieve scientific and sustainable development, but is of great significance in promoting the stable and orderly functioning of the national economy.This paper first summarizes the results from the research across countries on efficiency theory, financial efficiency theory and credit efficiency theory, and constructs a framework of financial efficiency theory from the point of financial risk management and allocation. Then, a system of credit efficiency theory is formed in order to carry out the empirical study on current GBOC's credit efficiency. It is followed by discussing the necessary requirements for achieving credit efficiency from the viewpoint of financial ecology, based on which some policy suggestions are given on improving the credit efficiency of GBOC.The research conducted in this paper expands and advances along the main thread of 'problem - theory - empirical study - standardized research'. The main contributions of this paper are as follows:(1) Building on the foundation of financial resources theory, it elaborates on the mechanism of achieving objective resource allocation through the management and allocation of financial risks, which further expands and develops the financial efficiency theory. From the point of risk allocation, if the financial system allocates the risks to the economic bodies (including investors and depositors) who are capable and most willing to take risks, the economic risks are then being evenly distributed through the trading of financial products,...