Study On X Efficiency Of Commercial Bank In China

With the full liberation of financial markets, commercial banks will face increasing competition, and their efficiency is an important factor in the life and death. This article is about X efficiency of commercial banks listed on in China, as well as its influencing factors. Its significance lies in the use of Data Envelope Analysis methods combined with Malmquist Index, measuring the value of X efficiency, and analyzing the trends and the influencing factors, in order to provide new ideas to improving X efficiency and enhancing the competition ability.Main contents:At the foundation of consulting the domestic and foreign related research literature, this paper mainly does research on the X efficiency from the following three aspects:1.The differences of X efficiency between commercial banks listed on. This part mainly takes advantage of Data Envelope Analysis, selects input and output indictators, and measures the value of X efficiency from technical efficiency, allocative efficiency and comprehensive efficiency respectively.2.The trends of X efficiency change between commercial banks listed on. This paper decomposes Malmquist index into technical efficiency change, technological change, pure technical efficiency change, scale efficiency change and total factor productivity change. Then it analyzes them respectively and carries out a detailed description of the dynamic changes.3.Factors of X efficiency. This paper discusses the factors from the external and internal views. The main external factors include economic environment, state's macroeconomic policies, regulatory environment as well as technology environment. The main internal factors contain the structure of property rights, risk management, human resources and intermediary business. Conclusions:After analysis, the main conclusions of the study come to the following:1. The efficiency differences between state-owned commercial banks and joint-stock commercial banks have been reduced. After joint-stock reform, the state-owned commercial banks' corporate governance has improved. And coupled with advanced science and technology, as well as introduction of equipment, their efficiency has been greatly improved.2.The efficiency doesn't change so significantly both in State-owned commercial banks and joint-stock commercial banks. This is mainly because banks' technological innovation and management are at a low level. Through Malmquist index, we can see that the capability of technology use doesn't improve so greatly as well as innovation capability. Besides, banks' elements configuration is unresonable and management level is not high.3.The factors of X efficiency is complex. In order to improve the banks' competitiveness, it is necessary to change their internal governace structure and improve their management level. At the same time, we should pay attention to the external environment.Countermeasure suggestion:This paper puts forward the following policy recommendations:1.Develop sound and effective macroeconomical policies and optimize the economic environment. Our country should improve the economical system constantly, break the monopoly of state-owned commercial banks through improving the competitive environment.2.Perfect relevant laws and regulations, improve the regulatory environment. Our country should formulate and improve relevant laws and regulations, optimize the credit market conditions, and improve the efficiency and quality of supervision.3.Promote the reform of commercial banks, property rights and norms. Specific measures: introduce strategic investors and achieve equity diversification; take full advantage of capital markets, and restruct state-owned commercial banks into true joint-stock commercial banks; further standardize the property rights structure of joint-stock commercial banks.4.Enhance commercial bank's risk management. Commercial banks should improve the bank's internal rating system and internal controls, strengthen the bank's own constraints and regulation, improve capital adequacy ratio, lower ratio of non-performing assets, as well as guard against financial risks.5.Improve staff quality, and rational distribution of human capital. Banks should pay attention to the training of their staff, improve the learning ability, and set up a sound employing system. Then banks gradually form their own characteristics of corporate culture.6.Strengthen the banking sector and technological advancement and innovation capabilities. Deepen financial engineering research and development, speed up the banking system software development and use of innovative financial products in order to spread the risks.