Empirical Analysis Of Foreign Equity Participation Of The Efficiency Impact Of China's Commercial Banks

Efficiency is always been one of the corn problems that the economics deal with. The finance is the corn of economy. What's more, the banking system is the corn of the financial system in China. With acceding the World Trade Organization and ablish all the barriers which has been arrested external finance,foreign capital enter China rapidy. The scale of the foreign capital participated in the banking system of China go up quickly. Think of efficiency, what's the influence of foreign capital infusion to China's banking system? So it is helpful to the related finance organization and managemet to do some work on this problem.After the review of some related notion ,some theories of merger and acquisition and some methodes of efficiency judgement,this paper analysis the current situation of foreign capital infusion in our country. And analysis the fluence to our commercial banks base on theory. Then chosse 12 Chinese commercial bank whith lead foreign capital infusion to make finacial analysis base on the data in 2000 to 2007.The fiancial affairs include security indicators, profitability indicators and liquidity indicators. And at the same time the paper select 2 commercial banks which haven't lead foreign capital infusion to make compare ananlysis. The result shows the capital adequacy ratio, non-performing loan ratio,and loan-to-deposit ratio are under the bear on leading foreign capital infusion. Further on, this paper introduced a prevalent method of efficiency in the world—date envelopment analysis. Then this paper used the DEA method to research 9 banks's technical efficiency, pure technical efficiency and scale efficiency base on the dates from 2000 to 2007.This 9 banks are all commercial banks which had lead foreign capital infusion. Whith using this non-parametric method this paper choose the operating espense & ownership interest to be input variables and tatal deposit & net profit to be output variables. The objective result shows a positive impact for China's commercial banks leading foreign capital infusion .