A Positive Study On The Efficiency Of Commercial Banks In China

Commercial banks are the most important component in most countries'financial system. Their efficiency not only affects the optimal distribution of the society resources, but also the delivery and implement of the economical & financial policies. To find a reasonable way to improve commercial banks'efficiency and social benefits, it's of great significance to measure and compare their efficiency, and analyze the factors which affect it.According to the data of 14 commercial banks in our country from 2004-2008, the paper measured and analyzed the intermediation efficiency and profit efficiency of the 14 banks in 5 years, using the method called Super-Efficiency DEA. And based on it, using Tobit Regression Model, setting profit efficiency value as dependent variable, the paper theoretically tested and analyzed the factors that affect it.The results show that the intermediation efficiency in these 14 commercial banks is not quite relevant to the profit efficiency during the 2004-2008; The intermediation efficiency of the four state-owned banks show a declining tendency, while the other 10 show a increasing one; The profit efficiency in four state-owned banks is little bit higher than intermediation one. Among other Joint-stock commercial banks, Pudong Development Bank and China Merchants Bank show high and stable profit efficiency. There're four main factors that affect the bank's profit efficiency:profitability, the length of time listed, asset quality and solvency.