The Demonstration Research Of Chinese Commercial Banks' Efficiency

Efficiency is one of the core problems that the economics deals with. It is also the goal that commercial banks chase in their business administration. The efficiency of banking is the centralized reflection of the competition ability of commercial banks, which is the key element to defense financial risk and open up the banking industry. After joining in WTO, banking business in our country has faced more intense market competition. In such living circumstance, the banking must improve its efficiency to have the power of competing with international banks and develop continuously.The paper makes use of the Data Envelop Analysis(DEA) approach to evaluate the technical efficiency, pure technical efficiency and scale efficiency (1999-2003) of the fourteen Chinese commercial banks. The empirical result of the DEA model shows that the technical efficiency of the Joint-Stock commercial banks are higher than that of the Solely-Stated-Own commercial banks, while the pure technical efficiency of the Solely-Stated-Own commercial banks are higher than that of the Joint-Stock commercial banks. The scale inefficacy of the Solely-Stated-Own commercial banks is basically the degression of scale pay, while the scale inefficacy of the Joint-Stock commercial banks is mostly the increase of scale pay. Then the paper employs the econometrics method to evaluate the macroscopical efficiency of the banking in our country. The regression results show that the loan and asset of the commercial banks in our country have the distinct effect to the increasing macroscopical economy of our country, and the loan and asset's contribute to GDP of the Solely-Stated-Own commercial banks are higher than that of the Joint-Stock commercial banks. Further, the paper conducts regression analysis on the macroscopical and microcosmic influencing factors of the commercial banks'efficiency in our country, while the DEA technical efficiency, pure technical efficiency and scale efficiency estimates are referred as dependent variable. The regression results show that the increasing rate of GDP, the investment of fixed assets and the price index have positive correlation coefficient with bank efficiency, while the market share of deposit, credit and assets have negative correlation coefficient. Moreover, the microcosmic influencing factors include the property right structure of banks, the capability of collocating assets, the management ability and the quality of banks'staff. Based on the above analysis, some suggestions are made in this paper aiming at the influencing factors of the commercial banks'efficiency: improving the external running circumstance, advancing the reform of the property right system in the Solely-Stated-Own commercial banks, optimizing the banks'assets collocation, enhancing the banks'technical level and the quality of banks'staff, innovating the banks'operation, promoting the banks'combination, increasing the banks'own capital rate and reducing the bad loans rate.The innovation of the paper is that not only the efficiency of commercial banks in China but also the influencing factors of the commercial banks'efficiency are analysed from microcosmic and macroscopical aspects. Moreover, when analyzing the microcosmic efficiency of commercial banks, the paper adopts both DEA model and single elements index to measure the efficiency of commercial banks, contrasts the results of the two methods, then educes the relevant conclusions.