A Study On Factors Influencing Efficiency Of Commercial Banks Of China

Facing the globalization of international finance,improving the commercial bank's international competitiveness is the key of their sustainable development. Efficiency,is one of the core problems which economics deal with , and reflects the competitiveness. The improvement of the bank efficiency is the foundation to keep watch financial risks,and to drive the bank industry's sustainable development. Bank efficiency reflects its performance,as well as the quality of national economic development. In china,the state-owned commercial bank is the main body in our country financial system,the lifeblood of our national economy and the mainstream of the financial activity. As a result,improving the commercial bank's efficiency,and then enhancing the bank's competitiveness,is the inevitable trend. So it is meaningful of A Study on Factors Influencing Efficiency of Commercial Banks of China.After the review of some related researches on foreign or native banking,this paper interprets the definition of the bank efficiency and then We exploit two different approaches respectively,DEA and SFA. From the sample of selected a total of 20 banks is composed of 4 state-owned commercial banks, 10 Joint-stock commercial banks,6 urban commercial banks,using the two methods to calculate the efficiency of sample banks from 1998 to 2007, and make a brief comparative analysis on the efficiency between two methods. Then the technical efficiency is decomposed into pure technical efficiency and scale efficiency. The research finds that the efficiency of the whole banking increases gradually and fluctuates at the same time. The efficiency of state-owned banks is lower than that of shareholder-owned banks,and there are a few differences between DEA and SFA. The result also shows that low scale efficiency of state-owned banks and some shareholder-owned banks can be the main reason for their low effiency. Then analyze the facts that may influence the efficiency of the Commercial banks: gross feature,industry,microphysics have carried on the theoretical analysis. Based on the above theoretical analysis,it use the model of the Tobit and makes a multivariate regression where the DEA technical efficiency are referred as dependent variable,factors includes competitive level in banking market,asset scale,the capital scale,the property right structure,the quality of the assets,the bank scale and so on. The results show that business loan,intermediary business income proportion and non-performing Asset proportion has negative correlation with banking efficiency,while the property right,Capital adequacy rate,resource allocation competence have positive correlation coefficient. market concentration and bank capital were not significant correlation with banking efficiency. Finally, according to the estimation result,some suggestions are made in this paper:Raise the capital adequacy ratio of Commercial banks,optimize the structure of property rights enhance the quality of bank capital , accelerate the pace of development of intermediary business,strengthening intermediary business innovation etc.