Empirical Research, Based On The Extension Of The Dea Method Efficiency Of China's Banking Industry

After China's entry to WTO, there will be more and more fierce competitions between native banks and foreign banks. China's commercial banking industry will face unprecedented challenges with gradual opening up of the domestic financial sector. Efficiency is the concentrated expression of competitive power in the banking sector, so that increasing the efficiency is crucial to win the challenge. This paper studies the efficiency of commercial banks in China, which has both important theory value and practical significance.After the review of some related documents on the research of domestic and foreign banks, this dissertation synthetically analyzes the efficiency of Chinese state-owned commercial banks and shareholding banks during 1997-2006 from two aspects about static efficiency and dynamic efficiency. At the same time, we put emphasis on the efficiency comparison between the state-owned commercial banks and the shareholding commercial banks. The main part of this paper can be listed as follows:First of all, we use the extended Data Envelopment Analysis (DEA) approach and model to estimate the contents including technical efficiency, super-efficiency, pure technical efficiency, scale efficiency, input redundancy and output deficiency. We find that the technical efficiency has ascended step by step, and the inefficiency of it mainly comes from that of the scale inefficiency. The efficiency of joint-stock commercial banks is higher than the state-owned commercial banks in general, but the gap of the technical efficiency between them has shortened obviously. And the former one is steadier than the latter one on the placement of the super-efficiency.Then, the paper analyzes the input redundancy and output deficiency of Chinese Banks based on the result of efficiency. It shows that the income and expend of interest are not the main reason influencing the efficiency. In order to improve the efficiency of Chinese Banks, the national commercial banks should reduce the input redundancy by cutting short the input scale of staff and fixed assets, and the stock commercial banks should reduce the output deficiency by developing the intermediary business.After that, this dissertation introduces a DEA-based Malmquist index to evaluate the dynamic efficiency of Chinese commercial banks. Decomposing the Malmquist index, we can explore more explicitly the change of bank's productivity between the catching- up effect and the frontier-shift effect. The estimation result shows that the TC index has obviously ascended in the latest years while the TEC index is lower than the average Malmquist index at the most time.In the last section, based on the 3 mature views on the innovation of banking field and the empirical results, some relative suggestions are given from the angle of market structure, property-right structure and company administrative structure.