The Study, Based On Dea Efficiency Of Chinese Commercial Banks

Efficiency is one of the core problems that the economics deals with. It is also the goal that commercial banks chase in their business administration. The efficiency of banking is not only in the individual bank's performance and its competence, but also the reflection of the intrinsic quality of the national economy development. The banking development depends on the efficiency in the long run, rather than the speed. After the entry to WTO, Chinese banking will be confronted with more fierce competitions between native and foreign banks. So it is meaningful in the theory and practice to do some work on the efficiency of Chinese banking and the influencing factors.After the review of some related researches on foreign or native banking, this paper interprets the basic meaning of the bank efficiency and the approaches applied in the researches, one of which is non-parametric. By making use of Data Envelopment Analysis (DEA) method, this paper measures the technology efficiency, pure technology efficiency and scale efficiency of 14 Chinese commercial banks from 1997 to 2005 on the basis of reasonable input and output. Then we make a comparison about this efficiency of the banks between 9 years, as well as explaining them. The estimation result shows that the efficiency of the whole banking increases gradually and fluctuates at the same time. The efficiency of state-owned banks is lower than that of shareholder-owned banks, which is in coordination with the performance of each kind of banks.Farther on, this paper has a research on factors that influencing efficiency from the micro and macro aspect. From micro aspect, the research on the influencing factors is conducted in multivariate regression model, while the DEA technical efficiency estimates are referred as dependent variable. The research conclusion: these factors including the property fight structure, the loan quality, education level of labor, the income of banks' middle product and the capital adequacy have an apparent effect on domestic commercial bank efficiency. From macro aspect, the paper researches the relationship between market structure and performance in China banking using a direct measure of DEA efficiency. The result shows that efficiency is negatively correlated with the market concentration, while positively with the profitability.At last, according to the problems mentioned in the last paragraph, we give the approaches to improve the efficiency of commercial banks in the fields of the system of property rights, the competitive level in banking market, the technical level, and the quality of the labor, the quality of assets and the capital adequacy, as well as middle product.