The Econometric Analysis Of The Efficiency Of Foreign Equity Participation's Commercial Banks

Bank efficiency is a topic of general concern. As an important tool to improve bank efficiency, the introduction of foreign equity can really improve bank efficiency and how much does it help?Six parts of this paper explain the problem. First, an overview of the relevant theoretical basis, ownership structure, corporate governance and the mechanism of foreign equity participation's influence on efficiency of commercial banks; Secondly, the introduction of the history, status and characteristics of foreign shares of Commercial Bank; Thirdly, using the method of Principal Components and DEA to analysis the efficiency of 21 banks in the year 2006-2009; Finally, using TOBIT model to examine the impact of Foreign equity participation to the efficiency of Chinese commercial banks.This paper shows the following conclusions:in the point of amount, the proportion of foreign equity participation has a negative effect on the efficiency of commercial banks; in a qualitative point of view, foreign equity participation in decision-making and the length of foreign equity participation have a positive effect on the efficiency of commercial banks. The reason why the current advantages of foreign equity participation of the banking industry has not shown because, in most commercial banks the foreign equity side has no real decision-making power, and the introduction of foreign equity participation in China is not long, the two sides have not yet fully integrated with eachother.