Study Of The Efficiency Of Urban Commercial Banks

After China's entry in WTO, large numbers of foreign capital banks swarm into China, new types of banks emerge continuously, and market competition become fierce increasingly. Confronted with such a market, city commercial bank must seek for a new way for sustainable development and enhance its competitiveness. As we know, bank efficiency is a centralized embodiment of bank competitiveness, and also the most comprehensive achievement evaluation index as far. Bank efficiency is a relative value, which can be evaluated from macroscopic or microscopic aspect. From the macroscopic aspect, bank efficiency is the bank's contribution ratio to the growth of national economy; and from the microscopic aspect, bank efficiency refers to optimization of financial resource allocation finished by every commercial bank. In terms of the nature, bank efficiency is an effective allocation of the bank's resource, and is a weighting obtained on the basis of bank resource allocation and effective utilization degree of every resource. Bank efficiency can be measured from either the whole or a certain function or part, it is a general term of bank's market competitiveness, input-output capability and sustainable development capability; bank efficiency is generally known as cost efficiency (also called as X efficiency or economic efficiency) . This paper aims to study the X efficiency of bank from the microscopic aspect.According to the obtained information source, this paper has carried out a research on efficiency of 19 typical sample banks, including 4 state-owned banks, 9 new stock-holding-system banks and 6 city commercial banks. Data Envelopment Analysis (DEA) method is applied to calculate the efficiency value of every bank firstly, and then calculate efficiency value of every kind of bank according to different types. Efficiency status and features of the city commercial bank can be founded out through comparative analysis of the calculated efficiency values. Since there are more differences among banks of different types, then causes of such differences among banks will be analyzed necessarily, namely, what kinds of factors affect the bank efficiency? The Chapter Four of this paper has analyzed, from qualitative/ quantitative and macroscopic/microscopic...