The Empirical Research Of Foreign Banks To Chinese Commercial Banks' Efficiency

In the background of economic globalization, financial openness is the inevitable choice of financial innovation in China. In this condition, the entry of foreign banks will bring great influence to our bank system. Scholar have done lots research about influence of our banks'efficiency caused by the entry of foreign banks. Come to the conclusion that the entry of foreign banks has advantages and disadvantages, but the advantages will outweigh the disadvantage in long term. The entry of foreign banks bring advanced business practice and management concept to quicken financial service innovation, optimize the allocation of resources and improve the efficiency of the our bank. What's more, it can help our banks accelerate internationalization process.In order to carry on the science and the precise evaluation of China's commercial banks, this paper chooses the DEA model to evaluate 11 typical commercial banks'efficiency. The empirical research reveal the 11 sample banks get the "DEA efficiency" in most period. But relatively, joint-stock commercial banks'efficiency is higher than state-owned commercial bank. Comparing the change of efficiency at China join WTO, we draw the conclusion that the entry of foreign bank enhance the efficiency of our bank in a certain extent, but we need do further research on its significance and stability. Then paper choose appropriate variable of banks'efficiency, macro-economic and entry of foreign banks to do empirical research based on panel data. The results indicated that the degree of our commercial banks'stock shared with foreign banks has obvious effects on overall efficiency.In view of the above, paper give some advises about how to improve the efficiency of banks on the background of foreign banks'entry. Firstly, our commercial banks should control the operational cost, accelerate innovation of financial business and complete the transition of business operation modes. Secondly, our commercial banks should cooperate with foreign banks on business and equity stake to accomplish the "double win" achievement finally.