The Evaluation Of The Competitiveness Of Commercial Banks By DEA-Based Methods

Finance is the core of the modern economy, and the banking is the pillar industry of the financial circles.Along with our country's entry to WTO,foreign trade will enter a new era,the foreign bank will inevitably beach in china successively and launch keen competition with the domestic commercial bank.If the whole competitiveness of the commercial bank in our country can't be improved, some serious problems that can influence the the financial stability and even overall economic development may appear. So it undoubtedly has sizeable academic and practical value that to carry on objective,overall analysis and appraisal to the present competitiveness state of the commercial banks in our country and make the effective tactics that can promote their competitiveness.The research of this paper chooses some representational indexes from many indexes;The competitiveness of commercial banks evaluation model is established by DEA method.Which resolves the problem that the weights are calculated subjectively and uniformity. This model is a new competitiveness appraisal approach and thinking for commercial banks.The main characteristic and innovation of this paper lie in three following aspects.First of all,with the limited statistical data,this paper uses DEA method to appraisal the competitiveness of commercial banks.This approach avoids the demands of large sample and typical distribution of former research and makes the competitiveness appraisal model for commercial banks be widely used.Furthermore,DEA method is different from the traditional method of using financial ratios by producing an effective separation of points and non-effective in evaluating effectiveness of production frontier.Finally,we select the bank developing stability and annlyze their financial data objectively.