China's State-owned Commercial Bank Efficiency Analysis Of The Factors

Efficiency is one of the core problems that the economics deals with. It is also the goal that commercial banks chase in their business administration. The efficiency of banking is not only in the individual bank's performance and its competence,but also the reflection of the quality of the national economy development. The banking development depends on the efficiency in the long run, rather than the speed.After the review of some related researches on foreign or native banking, this paper interprets the basic meaning of the bank efficiency and the approaches applied in the researches: stochastic frontier approach,which is employed in this paper to estimate the efficiency in Chinese banking.and then analyze the facts that may influnce the the efficiency of the state-owned bank: competitive level in banking market ,asset scale ,the capital scale, the property right structure,the quality of the assets, the bank scale and so on have carried on the theoretical analysis.We have estimated the inefficiency of each bank in 2000-2004, while the total loan, business income are specified as outputs, labor, net fixed asset and credit as inputs.The estimation result shows that the efficiency of the whole banking increases gradually and fluctuates at the same time.The efficiency of state-owned banks is lower than that of shareholder-owned banks.The research on the influencing factors is conducted in regression model, while the SFA inefficiency estimates are referred as dependent variable. The asset scale has negative correlation coefficient with bank efficiency, while rate of expanse to asset,the quality of the loan and the state ownership have positive coefficient.Based on the above results, some suggestions are made in this paper. The competitive level in banking market,and the quality of the credit and asset structure should be improved. The state ownership should be refied.