Research On X-efficiency Of Commercial Banks In China

Finance is the core of modern economy, while in the bank-oriented financial markets of China, the bank is also in core status of finance.X-efficiency of bank is the focus of academic and regulators. As Renminbi is gradually internationalized and inburst of foreign bank, China's commercial banking faces great opportunities and challenges, the study and improvement to relative low X-efficiency of our commercial bank became a major issue. The domestic and overseas research on X-efficiency of commercial bank mostly uses data envelopment analysis which method has been approved by the academic. But the determining of the input and output variables of sample bank, it appeared a lot of disagreement. Different choices of input and output variables get different results. So it produced many variable selection methods, but these methods respectively have advantages and disadvantages.This paper attempts to select input and output variables from other angle. The bank is considered as an ordinary enterprise, then human, material and capital are input, and they are respectively employee number, net value of fixed assets and equity. And output is not deposit or loan etc, because they aren't bank's operating purposes, the bank is enterprise, is in pursuit of profit maximization, so taking interest income and non-interest income as output is more reasonable. In the research methods, this paper uses BCC model,super efficiency and Malmquist index model to interpretate the listed Banks'input and output data comprehensively. The empirical result can reflect bank management status and some potential rules and problems. Through the analysis of these problems, this paper finally gets several important conclusions, combining with the actual situation of Chinese commercial banking industry, and puts forward several suggestions.Through empirical studies of this paper, this paper gets the following conclusions: the first, four state-owned commercial bank's technical efficiency which compares with the joint-stock banks still have a large gap. From mean value of technical efficiencies during 2006-2009, the four major state-owned commercial banks'technical efficiency are low-ranking. Second, the state-owned commercial bank's technology invalid mainly comes from scale diminishing returns, while city commercial bank's technical invalid comes from increasing returns to scale, and joint-stock commercial bank's circumstance is more complicated. Third, share-holding commercial banks and city commercial bank's total factor productivity change obviously which are different from the state-owned commercial bank, which explains that the joint-stock commercial bank and city commercial bank's performance are more instable, and earnings change with a larger extent.