Practical Study The Scale Economies Of Commercial Bank On Two-stage DEA Model

Under the trend of finance liberalization, Finance open made the capital controls system of China broke progressively while the finance was integrated. How to improve the competitiveness of banking becomes the focus that we pay close attention to. Efficiency is the concentrated reflection of banks'competitiveness, so improve the efficiency of banking is the base of taking precautions against financial risks, promoting banks'sustainable development. The scale of economics has reflected the relation between scale and cost, having important influence on business efficiency and cost efficiency, thus play an important role on the efficiency of the bank.Firstly, this paper defined the conception of scale economies of commercial banks over again after describing the relative conception of scale economies. At the same time, it analyzed the facts of affecting commercial banks' scale economies. Through comparing the scale between overseas banks and domestic ones, it analyzed the actualities of scale economies of internal commercial banks by using qualitative analysis. Secondly, after comparing the methods of studying the scale of economies, it advanced the standard of selecting a method to study scale economies. At the end of this paper, it put forward several solutions to improve the scale efficiency of domestic commercial banks. It concluded that the scope of scale on domestic commercial banks is large. If increasing the quality of assets, commercial banks have great potential development on bank scale economies. It also concluded that the revolution of property right is system guarantee, emerge is an effective approach, increasing technology and quality of assets is root route.After introducing the Tobit-model, this paper established the method—two-stage DEA model to study the scale economies of commercial banks. At last, this paper utilized the improved DEA model to make an overall analysis on the scale efficiency of Chinese commercial banks.This text started from general principle of the scale economics, explained the reason why the scale economics of commercial banks formed and influence factors, then combined the actual conditions of the scale economics of commercial banks of our country, introduced its present market structure, profitability, mobility, security and competition pattern briefly. Meanwhile, set up scale and measure function, expected from the scale to finding the appropriate scale of the commercial bank of our country in...