Research Of Chinese Commercial Bank Efficiency Using Data Envelopment Analysis

Efficiency is one of the cores of economic study. It is also the core of management of enterprises including banks. Efficiency of commercial banks is not only the determination of their own competence, but also the determination of the quality of economy. Especially in the developing countries, there are lots of problems in their economic system, and the banking industry is a concentrated embodiment of these problems. As open of the banking industry in China, the efficiency of banks controlled by the government is paid more attention on. So it is meaningful in the theory and practice to do some work on the efficiency of Chinese banking and its influencing factors.This paper evaluates the relative efficiency of 10 commercial banks in China from the year 2000 to 2004 with DEA model in the light of theoretical analysis. The efficiency of these banks can be obtained and ranked from the model used. The models reveal that the efficiency of commercial banks in China was low, and the efficiency of banks enforced stockholding system is higher than that of state-owned banks in China, but considering the efficiency trend the difference between the two is disappearing.Then, the factors which influence the efficiency of commercial banks are investigated by linear regression on the base of the theoretical analysis. The results of regression demonstrate the factors of efficiency are multi-layered and all-round, including property right, Corporate Governance, management, market competition etc. And one can see proper right seems the underlying one among them. Different from the common points of view, according to this thesis, there is less advantage lying in the banks controlled by the government through the capital market compared with those banks which aren't connected with the capital market. The performance of the new banks is better, maybe it is just because they are new and the policy they got is difference from the old ones, like the big four. So, we must adjust the property relations, and take further steps to change things systematically from the inside, and put the natural measures found into law.