Shareholding Structure Of China's Commercial Banks To Study The Efficiency Of Research

As China commercial banks have reformed the banking system, the bank efficiency has differed from before. We first examine the former study, and give theoretical analysis of the mechanism between ownership structure and efficiency. Using data from 2007 to 2010, we investigate the relationship between ownership on the banking sectors and the bank efficiency through empirical analysis. Our panel consists of 16 commercial banks in China. The input index include investment, owner's equity, operating cost and fixed assets; the output index include operating profit, interest net income, customer deposits and interbank deposits net increase, and net increase in loans and advances. Using a non-parametric analysis-data envelopment analysis method, we compute technical efficiency, pure technical efficiency and sale efficiency scores. The results include three inspects; State-owned banks' technical efficiency is larger than that of Joint-stock banks, which owe to the low scale efficiency. State-owned banks' efficiency increase rapidly, and surpass Joint-stock counterparts.We use the technical efficiency scores through application of DEA as independent variables, ownership type and amount as explanatory variables. We construct Tobit model to regress the variables, the results indicate that the ownership matters. State-owned share do harm to the bank efficiency; foreign share do good to the bank efficiency. The relationship between ownership amount and the bank efficiency shows a U-shape. Finally, the paper gives the way to adjust commercial banks'shareholding structure, in order to increase the banking system efficiency.