Efficiency Research Of Chinese Listed Commercial Banks Based On DEA

With the process of finance integration accelerating, China also promotes the reform of commercial banks. Through the reform, our commercial banks have made a great achievement. The efficiency level is increasing continuously. However, compared with foreign commercial banks, our commercial banks' efficiency level is still lower. In this context, the management of our banks is getting rid of simple number optimization and turning to cost efficiency optimization and effective cost management. Basing on this realistic requirement, this paper uses DEA model with price variable to analyze cost efficiency and its decomposition.Based on commercial banks' efficiency theory and statistic data of sixteen listed commercial banks between 2006 and 2009,this paper uses CCR model under the condition of constant returns to scale,BCC model under the condition of variable returns to scale and Cost Efficiency DEA model to analyze cost efficiency,allocation efficiency,technical efficiency,pure technical efficiency,scale efficiency and returns to scale interval. At the same time, this paper also uses Malquist Index Model to calculate Total factor productivity transformation of sixteen listed commercial banks between 2006 and 2009.According to the empirical analysis results, this paper mainly analyzes our listed commercial banks' cost efficiency trends between 2006 and 2009, and comparatively analyzes the differences between state-owned commercial banks and joint-stock commercial banks during this period. Then this paper analyzes the factors that influence the cost efficiency level and cause cost efficiency differences between state-owned commercial banks and joint-stock commercial banks.The results show that the main factors influence our banks' cost efficiency are lower allocation efficiency and lower scale efficiency. In addition, the slowing trend of technical efficiency also affects our banks' operational efficiency. The reason for the differences between state-owned commercial banks and joint-stock commercial banks is state-owned commercial banks' lower ability of scale control and scare resources allocation. However, the differences are reducing gradually, which means that the reform of our commercial banks is successful and the efficiency level has improved. According to the results, in view of the actual situation of the banks, this paper gives some advices about how to improve our banks' efficiency level. We should deepen the reform of the property rights system, improve Enterprise Institutional Structure, strengthen financial innovation and technological innovation, control scale level reasonably. Besides, our commercial banks should expand scale efficiency edge through technological progress to raise our banks' efficiency level.