Operational Efficiency And Effectiveness Of China's Commercial Banks Continued Assessment Study

As the Major component of the financial industry,commercial banks play a role of financial intermediation.It's operation efficiency is directly related to the resource allocation and sustainable development capacity,and has a direct impact on the sustained and healthy development of our national economy.The efficiency improvement of commercial banks is the key to guard against risks and to promote sustainable development of banking sector.This problem is also the focus to deepen the financial reform in China.In essence,the commercial banks' efficiency is the effectiveness to minimize the cost under the established output or to maximize the profit under the established input. But the commercial banks' efficiency sustainability refers to a correlation between future efficiency and past efficiency of banks,that is,the role of bank's current performance to reveal the future performance.For this reason,we can't only focus on the banks' efficiency,but also concern about the continuity of the efficiency in order to dig out more useful information about the efficiency of banks to be used to guide management practice.Based on the analysis above,this paper carries out the empirical analysis on commercial banks' operation efficiency and efficiency continuity in China,using super-efficiency DEA model and Malmquist index approach.First of all,we analyze the change of efficiency and problems in the reform process,through the super-efficiency and it's comparative research between banks.Secondly,we evaluate the efficiency continuity of China's commercial banks,analyze the dynamic changes in operating efficiency using the Malmquist index,analyze the impact of"chase effect"and"cutting-edge mobile noodle effect"on changes in efficiency,and on this basis we elaborate the direction to improve efficiency.Finally,based on the Malmquist index we advance the efficiency continuity index,and classify the listed commercial banks of China on this basis,in order to provide relevant reference for different levels of decision-makers to formulate operational objectives and to improve management strategies.