China's State-owned Commercial Banks. Reform Process Efficiency Analysis

Efficiency is the centralized reflect of the competition ability of commercialbank, which can be the key element to evaluate the reform of stated-ownedcommercial bank. With the acceleration of our bank reforms, studying on theefficiency problems as well as its influence in such a key process has certaintheoretical meaning and realistic meaning.First the paper is for bank efficiency concept limit and basically theoreticalanalysis. From comparison of the difference of efficiency and benefit and the respectof division of it, the author analyses the basic meaning of bank efficiency.The second part mainly concerns about the current situation state-owned bank ofits efficiency. A review of the reform of bank is follow studied. The purpose of suchan analysis is to the introduction of the efficiency and reform of State-owned bank,which can be the foundation for further analysis. Then is the test and investigate. According to the default of some domesticcurrent efficiency assessment technique methods, the author chooses reasonableinput and output index and analysis the efficiency of four state-owned bank of 1994 to2004 and 12 commercial banks of 2003 to 2004 with the method of data envelopanalysis (DEA).The result indicate some progress have been made during the reformprocess which would be mainly attributed to the support of government. At last, the author focuses on the influence factor and some difficult problem ofefficiency. Based on this, the author put forward the major channels of the promotionof efficiency state-owned bank which can be divided into two aspects, inside andoutside. As to the former, optimization of state-owned commercial bank structure ofproperty right and governance structure, acceleration of the financial innovationwould be the key role. The latter mainly refers to the financial situation improvement.