The Empirical Study Of Commercial Bank Efficiency In China Based On DEA New Cost Efficiency Method

Commercial banks, as public enterprises, play a fairly important role in China's economy. Their steady and smooth operation is closely connected with fine development and steady society. The development of banking not only affects stability and safety of a country, but also affects the allocative effect of social resources and usage of financial resources directly. The paper introduces DEA new cost efficiency method to conduct the empirical study about 43 commercial banks in our country. It mainly discusses the background of the theory and its reasoning process, improves and perfects the method of bank efficiency.The paper further uses Tobit model of panel data to analyze the factors which affect the efficiency of commercial banks, such as the bank scale, the structure of property rights, the ability of assets distribution, the abundance to assets ratio and the cost to assets ratio. Finally the paper makes the conclusion that cost efficiency of state-owned banks is lower than that of shareholding commercial banks and other urban commercial banks. There are some problems in state-owned commercial banks including too large scale, high ratio of bad capital and so on, while shareholding commercial banks and other urban commercial banks have flexible ways of operation and strong ability of learning. The cost efficiency is closely related to allocative efficiency. The cost efficiency is decomposited from technical and allocative efficiency and is affected by both of them. The cost efficiency of different commercial banks is affected by various factors.