Study On Commercial Bank's Efficiency And Its Influencing Factors Analysis In China

The bank's efficiency has been one of the focus studies by many domestic and foreign economists, and is also the very important issues for bank managers. The efficiency of banks is not only the operating performance of the banks themselves, but also embodies the competitiveness of banks. Bank efficiency and cost-effective control is the key to succeed in the competition. Since the shareholding system reform in China, banks operating level, management capacity, asset quality have been tremendous improved, and efficiency level of banks have also made great progress. The empirical study is to make a detailed analysis on the dynamic changes of efficiency since the bank reform, and accordingly to provide the practical measures and policy recommendations. So this research has important theoretical and practical significance.This paper reviewed the domestic and foreign literature at first, and then selects our 14 state-owned and joint-stock commercial banks as the research sample, and their operation in 1998-2008 periods as the research object, using DEA model to estimate the cost efficiency, technical efficiency and allocative efficiency value. Meanwhile, this paper analyze the efficiency change each year from the cross section and longitudinal section, and use Malmquist productivity index model to obtain the Malmquist index and the two decomposition index - index of technical efficiency change and technological progress index, to determine the changes in efficiency and changes in the source for more comprehensive analysis of the efficiency of inter-banking dynamic evolution. We found: the efficiency of China's commercial banks in the study did not reach the effective, and the low cost efficiency of China's banking sector is mainly due to the invalid allocation efficiency. Cost-efficiency and allocative efficiency changes can be roughly divided into two stages based on the shareholding system reform process. The overall level of technical efficiency increased slightly, and its relatively small fluctuations. Dynamic changes in bank efficiency indicators - Malmquist productivity index shows fluctuations in the overall upward trend, from the decomposition of Malmquist index terms, technological progress is the main driving force of efficiency improvements.Furthermore, this paper selects the various efficiency indicators as the dependent variable, from the macro and micro levels selects the various factors affecting the efficiency of banks as independent variables, using panel data models - random effects model, to analyze the affecting effects of various factors on bank efficiency. The results showed that: macroeconomic factors have significant negative impact on the static efficiency indicators, and significantly positive role in promoting on the dynamic Malmquist index and technological progress index. Bank's own configuration capability, capital requirements have insignificant impact on efficiency, while improve the innovative banking services level and profitability and reduce non-performing loan ratio of banks can significantly improve the efficiency level. Bank ownership structure has a negative effect on various efficiency indicators.Finally, this paper has made a summary of empirical research, and from the ownership reform, technological progress, innovative business promotion, loan fund management and other aspects provides policy and recommendations for decision-making departments.