The Research On Chinese Listed Banks' Efficiency And Influence Factors

From July 2007 to August, the subprime mortgage crisis in the United States was broke out totally, which has had profound impact on the global economy and financial markets. The subprime mortgage crisis spread rapidly from a single stock market to the global money market and capital market, which spread across the global commercial banks, investment banks, fund companies, financial institutions, and further extended to other financial market participants as well as investment and consumption. Chinese 2007 economic and financial situation was complicated as well: the uncertainties leaded to a significant increase, which made the operation and management of the banking industry face new challenges. In the face of intense domestic and international economic environment, Chinese banking industry increased credit risk, the uncertainties on the banking system's liquidity raised, liquidity management was more difficult and the pressure on the appreciation of RMB accelerated the exchange rate losses in the banking financial institutions. With the in-depth development of financial globalization, the changes on international financial market put impact on the Chinese banking industry increasingly, and further test Chinese banking industry to resist the international market risks.The development of banking industry is related to a country's financial stability and security, whose efficiency would have direct impact on the allocation of social resources and the utilization level of financial resources. The listed banks are regarded as one of the most important component of commercial banks, which play a decisive role on Chinese economy. In the face of severe domestic and international economic situation, how to improve Chinese commercial banks, especially the listed banks' operating efficiency and enhance their overall competitiveness of Chinese banking industry is an urgent problem.In this paper, we analyzed and compared with the technical efficiency, pure technical efficiency, scale efficiency and returns to scale ranges of the 11 Chinese listed banks from 2003 to 2007 by data envelopment analysis (DEA) approach. Then, we made an on-the-spot investigation on the changes in technology, efficiency and Malmquist index dynamically by Malmquist index. Finally, we regarded the value of efficiency by the DEA approach as a result of variables and analyzed the influence factors on Chinese listed banks by regression analysis through multiple linear regression model. In this paper, the results are as follows:(1)The technical efficiency of Chinese listed banks appeared stable upward trend from 2003 to 2007, indicating that the use efficiency of resource in the listed banks has been further improved during this period. The Industrial Bank's performance was best in all of the listed banks, which was at the forefront of productivity level for effective technology. Minsheng Bank, China Merchants Bank and Shanghai Pudong Development Bank were weak technical efficiency, whose technical efficiency were more than 0.99.From the different nature of property rights, joint-stock listed banks on the overall technical efficiency was higher than that of state-owned listed bank, indicating that the property rights arrangements affected the listed banks' efficiency.(2)We divided the technical efficiency into pure technical efficiency (PTE)and scale efficiency (SE)by DEAP Version 2.1 software. The empirical results showed that the pure technical efficiency of Chinese listed banks was good. The vast majority of the listed banks' PTE were 1.00 during the observed period, which were at the effective forefront. State-owned listed bank on the pure technical efficiency as a whole was higher than joint-stock listed banks', but the scale efficiency was lower than the latter. The reason may be attributed to the state-owned bank with a strong financial background, the introduction of technology and the ability to absorb was strong, so the pure technical efficiency was high, but too many outlets and staff redundancy made the scale inefficient. Although the joint-stock banks' software and hardware technology level inferior to state-owned banks', but its size was fit for the level of management technology, so the scale was more efficient.(3) The results that Malmquist index calculated showed that Chinese listed banks' average annual productivity growth of 9.95 percentage points from 2003 to 2007, to improve the relative efficiency was 0.975 percentage point and technological advance 8.1 percent, indicating that Chinese listed banks improved efficiency Mainly from the technological progress, because the technical input of Chinese listed banks increased in the five-year period, which made a positive effect, to promote Chinese listed banks to improve the overall efficiency actively and expand the border of technology.(4) The efficiency of the listed banks on the impact of factors regression analysis showed that the structure of property rights, the time of banks to be listed, the bad-loans rate, asset allocation capability (loan-to-deposit ratio), asset's scale and so on, which had significant relevance on Chinese listed banks' efficiency.