Study Of The Efficiency Of Commercial Banks

At present, the method of comparing operational index is widely used in the analysis of efficiency of commercial bank in domestic. Although the method is concise, we can't analyze the efficiency of the china banking completely and systematically and quantify the analysis with it. Aim for the fault of the current methods, the author choose reasonable index system and analyze the technical efficiency and scale efficiency of china commercial banking with the method of DEA, i.e. data envelop analysis.As we all know, the efficiency of china banking is low, which in turn manifest that there is potential improvement in china banking. The' article also demonstrates that the domestic-capital banking has great potential in improving the efficiency in some extent if we only want to achieve the current level.Because of the low efficiency, the domestic-capital banking must improve its. The external press i.e. the competition of foreign-capital banking and the inner motivation i.e. the rule of relational treaty force also the domestic-capital banking to improve its efficiency. Based on the quantitative research, the author analyzes the reasons of low efficiency. As for the state-owned commercial banking, sharing in too much political business is one of the reasons. The market structure is monopolistic is another reason. What's more, the fault hi organization structure and staff proportion also are the others but not the complete reasons. The joint-stock bank, which offers some valuable experiences and lessons since it is found, is an important part in china banking. According to the experiences and lessons, the author offers some proposals and countermeasures to improve the efficiency of state-owned commercial bank from the aspects of asset authority, company govern, human resources and motivate mechanics.