A Research On The Efficiency Of Commercial Banks In China

The 21st century is a new era of finance featuring global, electronic and laissez-faire finance. Presently, a majority of countries over the world are reforming their financial systems; and Commercial Banks tend to develop global, all-inclusive, and large-scale business. Under this circumstance, the doctoral dissertation mainly focuses on these two issues below: one is about the operating efficiency of China's Commercial Banks, the other the influences upon it exerted by property right structures, marketplace structures and the entry of foreign banks into China.Based on predecessors'excellent research results, through means of theoretical analysis, model construction, and verification, efforts are made to analyze the operating efficiency of China's Commercial Banks, to verify the influence imposed upon it by equit structures and market structures, and to probe into issues of banking reforms.First, this dissertation systematically analyzes the concepts of efficiency and bank efficiency, cost efficiency and profit efficiency, as well as the origins of scale economy, scope economy and X-efficiency; the measuring functions and estimating methods of bank efficiency are introduced. Moreover, the risk-generating mechanisms and measuring methods of banks efficiency, the relationship between capital and risk, and the characteristics of the capital structures and asset quality of China's Commercial Banks are researched, and a bank efficiency model based on capital structure, asset quality and risk is made.Second, it gives an analysis over operating performance, cost-management performance, asset-allocating performance, and credit risk of China's Commercial Banks. It measures the operating efficiency of Chinese Commercial Banks by means of stochastic frontier approaches and the Malmquist index methods, and compares efficiency differences among state-owned banks, the listed banks, the non-listed banks and the city commercial banks. As a result, it concludes that the efficiency measurements of China's Commercial Banks are greatly influenced by capital structures, asset quality and risk, without consideration of which will lead to some degree of error in efficiency measurements, meanwhile, affecting the ordering of bank efficiency accordingly. Generally speaking, the operating efficiency of Chinese Commercial Banks is bad by overall performance. The listed banks and non-listed banks are doing better; however, state-owned banks and urban commercial banks behave a little bit worse.Third, it researches into factors like equit structures, market structures and the entry of foreign-owned banks that affect bank efficiency by surveying their functional mechanisms. A conclusion is made that the assumptions of market structures and efficiency structures don't work in China. Nationalization of the first largest shareholder of commercial banks produces a relatively huge negative-impact upon its efficiency, but the conditions in which the shares are held by foreign people, inside-bank people, or the state have some positive impacts upon bartk efficiency.Finally, this dissertation discusses issues related to reforms of bank systems.