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Research On The Commercial Banks' Efficiency Based On Data Envelopment Analysis

Posted on:2009-09-12Degree:MasterType:Thesis
Country:ChinaCandidate:J WangFull Text:PDF
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The research on the banking efficiency has been one of the main issues for the international financial sector and every supervisory authority over the last two decades. The efficiency of commercial banks aims at minimizing the input and maximizing the output That is to say economizing the cost input farthest or Promoting the maximization of returns. 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, Nanjing Agricultural Bank must improve its efficiency to have the power of competing with international banks and develop continuously.The paper compares the advantage and disadvantage of two kinds of approaches of measuring bank efficiency on the basis of conclusion of foreign and domestic research documents. The paper uses the DEA approach to measure the technology efficiency, pure technology efficiency and scale efficiency of 13 branches of Nanjing Agricultural Bank from 2004 to 2007. The comparison among the 13 branches, and the multiplied index comparison in one branch let us have a general view over the management efficiency of every branch and the difference between the factual value and the theoretical value. After measuring the efficiency of the 13 branches of Nanjing Agricultural Bank, the econometrics model is put forward and we confirm that independent variables that the loan quality, the scale of bank assets, the income of banks' middle product, the market share of deposit, the growth rate of the staff. At last, according to the result, some advices for the reformation of Nanjing Agricultural Bank are presented. The advices are: adjusting bank's business process; developing middle product and promoting financial innovation; speeding up the technology innovation and progress; strengthening the staff's management; improving the assets' quality.
Keywords/Search Tags:Nanjing Agricultural Bank, efficiency, DEA, influencing factor
PDF Full Text Request
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