The Research On Efficiency Of State-owned Banks Based On PCA And DEA

Undoubtedly, four biggest banks still occupy extremely antique status and theirreforms are still very important in our financial systems. At present, the curtain ofreforms of four biggest banks has stretched; CCIB, CCB and BOC have successfullybecome listed companies. By the end of 2006, according to the agreement of WTO,our banking industry has also opened to the foreign-funded companies. With theincreasing fierce competition, it is very urgent to increase competitiveness of fourbiggest banks. Due to the fact that operational efficiency is reflection ofcompetitiveness and the increase of efficiency is very vital for financial institutions toenhance their competitiveness, the research on the efficiency of four banks since 2000is of realistically sense and theoretically sense.In the beginning, this paper introduces the background and main purposes ofresearch, makes detailed summaries for similar researches from domestic andoverseas experts, describes the whole technical graphs, points out some drawbacks ofpresent researches with DEA, and expresses features and creativities of it. Then thispaper gives definitions of various efficiencies, explains some efficiency with graphsand mathematical equations and clarifies some usual methods for banking efficiencyresearches.During the nucleus part, this paper first makes simple retrospect for reforms offour banks, generalizes various factors for efficiency and points out three decisivefactors of efficiency of four banks. Then this paper analyzes the effect mechanism ofreforms on efficiency of four banks, makes preliminary tests for some accountingindexes with single-factor methods, judges the efficiency trend and points out fournucleus problems in present reforms. Especially, this paper makes detaileddescriptions for the efficiency of four banks from 2000 to 2005 with PCA and DEA,calculates their PTE, SE and TE, and analyzes the efficiency trend and its reasons.Finally, it makes correlation analyses between efficiency values and some macrofactors and probes which factor has impacts on efficiency from the perspective ofoperational strategy and internal management.Last, according to the empirical conclusions and present reforms, this paperproposes some measures to enhances the efficiency of four biggest banks, makessummaries and admits its own some drawbacks.