The Evaluation System Of Finacial Efficency Of China And Analysis Of Criteria

Finance is playing a more important role in modern economy. It is a critical factor to keepthe economy stable. Before the reform in 1979, China adopted a command economy. TheChinese government controlled the distribution of capital, instead of the financial market. Duringthe reform, China changed to a more market-oriented economy and the economy grows very fast.The rapid growth of financial industry is a strong support for the development of economy, and ithas become the central issue modern economy. Chinese financial industry has greatachievements during twenty years' reform, including the enlargement of financial system, theenhancement of financial structure, and the integration with global standards. However, there arestill many problems in the developing of financial industry. The low efficiency of using capital isone of the biggest obstacles. It is obvious that improving the financial efficiency is veryimportant. According to the arrangement of the contents, the whole paper can be divided intofour chapters.Chapter 1: This chapter summarizes various theories of financial development, and makesthe appraisal of efficiency view which contains. Then it investigate various domestic literaturestudying about financial efficiency systematically and analyzes the different definition offinancial efficiency as well as the research theory framework . With all the work mentionedabove, this chapter modifies and establishes the new framework of the financial efficiency.Chapter 2: This chapter establishes the statistical indices of Chinese financial efficiencyaccording the new framework, with which it analyses the characteristics of Chinese financialefficiency. Then served for the empirical needs, this chapter uses ECM to study our countryfinance development to economical contribution and examines the height of our country financeefficiency through contrasting with the overseas empirical data .Chapter3: This chapter analyses the factors influencing Chinese financial efficiencyaccording to second chapter of real diagnosis findings. First section analyzed the factors whichhave affected macroscopic finance efficiency . The second section, taking the bank for example ,analyzed the factors which have affected microscopic finance efficiency from four aspects aboutbank property right system, property quality, bank scale and human capital.Chapter 4: This chapter provides corresponding measures to improve the Chinese financeefficiency through summarizing above content. The key of improving the Chinese financeefficiency is to speed up the monetary system reform, positively impel the state-owned enterprisesystem reform and finally promote a harmony development of finance and the economy.In brief, this article research shows that there is a rapid financial growth with low efficiency.Improving our country's financial efficiency enormously will promote a harmony developmentof finance and the economy. But, there are many factors which affects and restricts our country' sfinance . In order to promote the entire national economy development, we must speed upfinancial and the economic restructuring step, and enhance our country's level of the financialefficiency.