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

Since 2003, China's deepening of joint-stock reform of state-owned banks, Whether China's banking industry assets, asset quality, profitability, or ability to withstand risks, are in the best period in history. However, with the large-scale entry of foreign banks, more intense market competition, and the bank deposit and lending spreads shrinking each year, China's banking industry faces competitive pressure is also growing. For the banks, strengthen the competitive edge is the way, because the competitiveness is the key to banking industry's survival and development. Therefore, this paper selects the bank's operating performance as research objects. By analyzing the operating performance of China's banking industry, we can analyze the status quo of China's banking sector and evaluate the levels of efficiency of China's banking industry after experiencing post-reform. And through the analysis of factors affecting business performance, we can illustrate the way to improve the China's banking industry.This paper reviews a variety of banking efficiency evaluation methods at first, and combined with China's specific conditions, selects the three-stage DEA model proposed by Fried, Lovell, Schmidt and Yaisawarng (2002) for empirical studies of the operating performance of China's banking industry. We select China's 13 state-owned and joint-stock banks in 2008 as a research sample, and select the property rights structure, length and branch number as the environment variables. Through the adjustment of SFA model in the second phase, then we re-use the DEA model to calculate the true value of the sample banks. Comparing the efficiency of value before and after adjustment, we can get the following conclusions: sample Bank overall technical are Invalid, pure technical efficiency of most samples are stable and close to effective; after adjustment, state-owned banks have a substantial increase in scale efficiency and generally higher than the joint-stock banks. But its pure technical efficiency is lower than the joint-stock banks, resulting in the overall technical efficiency of state-owned banks less than the joint-stock banks.This paper selects the value of efficiency as the dependent variable, and select the capital adequacy ratio, non-performing loan rate, deposit-loan ratio, intermediary business ratio, return on assets, human resources ratio and foreign capital shares of holdings as influencing factors, make use of the Tobit model to analyze the affecting size of the factors. The study found: reducing non-performing loan rate, raising their capital adequacy ratio, deposit-loan ratio, intermediary business ratio, return on assets, human resources ratio and foreign capital shares of holdings can enhance the efficiency of banks. From a significant point of view, the capital adequacy ratio, the deposit-loan ratio of banks, intermediary business ratio and foreign capital shares of holdings did not pass the impact test of significance, indicating that improving these factors has no significant effect for efficiency improvement.Finally, the paper summarized the research results. And based on empirical studies conclusions, from the property rights reform of state-owned banks, credit fund management, the development of intermediary business, personnel system for construction and introducing the abroad strategy investors we put forward proposals to enhance operating performance of China's banking.