The Analysis Of Efficiency With International Perspective In China's Banking Industry

This article analyzes the competition environment of China's banking industry at home and abroad, to identify the characteristics of global competition; And defines the connotation of the bank efficiency, and classifies the bank efficiency including scale efficiency, technical efficiency, allocative efficiency etc.. Introduce the parametric methods and non-parametric methods of measuring bank efficiency, and analyze and compare their advantages and disadvantages. And introduce the DEA method and calculation model.From a statistical point, this article select the bank deposit and Interbank Bid, assets and personnel as input indicators, loans and deposits as output indicators. The paper calculates the technical efficiency, scale efficiency and pure technical efficiency of 14 China's representative commercial banks during 2000-2007 by using DEA method. The results show that the operating efficiency of commercial banks in China from 2000-2007 is upward trend. But in the process of rising they will be ups and downs of different degrees. The efficiency of joint-stock commercial banks is higher than the state-owned commercial banks. Furthermore, this paper carry out a comparative analysis on the sample banks efficiency based on different property right structure: by one way, this paper divide the sample banks into six categories in accordance with the identity of the controlling shareholder, and compare their efficiency on that basis. By another way, this paper compares the banks efficiency before and after the foreign capital joins into the sample banks, which show us that the central-enterprises controlled banks, private- controlled banks and foreign-controlled banks use foreign capital more efficient than local state-owned banks and local financial controlling banks. The central government-owned banks are the least efficient use of foreign capital. In addition, comparing the changing of banks efficiency before and after the foreign capital joins into the sample banks we found that most banks are more efficient than before the introduction of foreign capital in different degree.Finally, analyze the reason of low efficiency of government-owned banks with China's actual conditions. The mainly reason is the internal governance structure not perfect, fuzzy property rights system, the lack of external market competition, government over-regulation and insufficient production credit environment.