Empirical Study Of Native Commercial Bank Efficiency

Efficiency is one of the core study subject in economic.It also is the subject commercial banks pursue.Bank efficiency reflects its performance and its competitiveness.Banking development depends on the efficiency.Following deregulation,the world stream of mergers and acquisitions,efficiency becomes more and more important to financial institutions and has been common subject to international finance theorist.financial industry leader and policy makers.With the protection period of WTO passing and interest rate market-basing,our country's commercial banks will face with more and more fierce competition.Whether and how banks may survive and develop in heightened competition depend in part on how efficiently commercial bank operate.Meanwhile,in the finance system where indirect financing is the main mode of financing,commercial banks play important role.In a word.commercial banks efficiency is becoming cure issue we should pay attention to.To study efficiency of our country's banks and the influencing factors has very important academic and realistic meaning.On the basis of general bank efficiency theory,in the way combined with the positive analysis and normal analysis,the quantitative analysis and qualitative analysis,this paper make deep research on the current situation of efficiency in Chinese banks.On the basis of the review of some related researches on foreign and native banks,this paper interprets the basic meaning of the bank efficiency and the approaches applied in the researches,data envelopment analysis(DEA) approach. According to the DEA approach,this paper estimates the efficiency of 4 state-owned commercial banks and 9 share-type commercial banks during the period 2001-2005 and definite labor and expenditure as input variables,savings and profit before tax as output variables.Then the research use the Tobit regression model to analysis factors influencing our country's bank efficiency.The result shows that bank efficiency is really closely related to earning power and Property Rights,bank efficiency remarkable negatively correlative to resources arrangement,the ratio of operating expenses to operating income and the percentage of intermediary business.Assets quality and assets scale is not the decisive factor.Based on the above empirical study, this paper has proposed some suggestions on improve bank efficiency in our country.