Empirical Research On Efficiency Of Commercial Banks Of China

The bank is so important for the macroeconomic system that we should be concerned with its operating efficiency. In this thesis I am going to employ the Data Envelopment Analysis(DEA)-CCR model to estimate the total Technical Efficiency (TE) of 13 commercial banks in China from 2001 to 2006. Then I will employ the DEA-BCC model to estimate their Pure Technical Efficiency (PTE) and Scale Efficiency (SE) , thus I can compare with the Technical Efficiency of state-owned and other banks and find the difference with them. After this, I am going to employ the Tobit regression to find other resources that impact Technical Efficiency.Besides the preface, this thesis consists of four chapters.Chapter one is divided into two parts. Part one introduces the concept of efficiency of commercial bank and initiates its three types: scale efficiency, scope efficiency and X-efficiency. Part two introduces some conclusions of former foreign and domestic literatures, and I choose Data Envelopment Analysis method to measure the efficiency of Chinese commercial banks in the thesis.Chapter two is the theoretical basis of the thesis. It introduces the CCR, BCC models and Tobit regression model.Chapter three is to obtain the value of technical efficiency, pure technical efficiency and scale efficiency of the thirteen banks.Chapter four consists of two parts. It is the core of this thesis. Part one analyses the influencing factors from microscopic layer. Part two establishes econometrics model and makes Tobit regression to testify the determinants of efficiency and get the following conclusion:1. The technical efficiency of state-owned commercial banks is lower than the others, the source of low technical efficiency comes from the low Scale Efficiency.2. The efficiency of commercial banks displays U shape trend.3. The market competition can promote the efficiency of commercial banks through improving the corporate governance.4. The degree of profit has a positive relativity with Technical Efficiency. The ownership structure has a negative relativity with Technical Efficiency. The inefficiency of state-owned commercial banks originates from the public-owned ownership structure.For lacking of the data, I can't calculate the overall efficiency and allocate efficiency. And I only choose the DEA method to measure the efficiency. In the future, it should pay more attention to the use of other methods.