The Research On Operational Efficiency With Diversification Of China's Listed Banks

Finance is the core of modern economy, China's listed banks play a decisive role in the financial system.In recent years, China's economy develops very rapid, and the customer's financial needs have become more diversified. Besides, foreign banks enter into China after the protection of WTO, which has brought a tremendous impact to China's listed banks. In response to the fierce market competition, China's listed banks increasingly become pluralistic operation: developing the traditional asset-liability and intermediary business at the same time. As a result, China listed banks have reduced the consolidated operating costs and increase operational efficiency through diversification. Diversification has become an important business strategy to listed banks, the research to operational efficiency become more realistic and urgent significance.The article review the relevant literature of commercial banks diversification first, analysis the implications of bank diversification and the theoretical basis of diversification, including the synergistic effect theory, the financial assets homogeneity theory, the scope of economic theory, while the article propose the influencing factors of bank diversification.On the basis of analysis the current developing status about China's listed banks diversified operation, the article establish diversified input and output indicators, use translog cost function, collect the relevant data in 2001-2008, operate an empirical research on China's listed banks diversification efficiency. Finally the article carry out the corresponding proposals about raising listed banks diversification efficiency about government regulation and listed banks, and wish for learning and reference of improving listed banks operational diversification efficiency.