Efficiency Evalution Of China's Four Commercial Banks Based On Dea Model

Commercial banks in the financial services industry in China have been playingan important role in China's national economy and it is also an important part of ourfuture economic growth and development. Therefore it is of vital importance toeffectively and accurately assess China's commercial the efficiency of banks andgive the appropriate policy guidance and recommendations.And there is no sound evaluation system for the efficiency of China'scommercial banks, so it must be difficult to give accurate and objective evaluationof the efficiency of China's commercial banks and the corresponding policyrecommendations is also more difficult. Thus find ing a more efficient and effectiveevaluation methods and modeling is very important and critical. DEA model indealing with many indexes input and many indexes output has its unique advantage,so choose DEA model to the efficiency of China's commercial Banks assessment iscurrently the most effective method.Based on DEA model to compare China's four major commercial Banks and theother eight joint-stock commercial bank s' efficiency, we find : the efficiency ofChinese commercial Banks is gradually rising, the technical efficiency is the mainreason of the invalid scale efficiency, eight share-holding commercial Banks'average technical efficiency is higher than the big four commercial Banks, but thebig four commercial bank's technical efficiency relative to other joint stockcommercial Banks. Through empirical analysis, the big four commercial bankcompared the relative efficiency low mainly comes from the policy loans too much,scale low efficiency and human resources management and other reasons. Based onthis and combined with the experience of the banking reform at home and abroad,China's four major commercial Banks should perfect the property right structurereform, improve market structure and improve the efficiency of the scale ofspeeding up technological progress and the cultivation of talents for comprehensivereform; In addition, the big four commercial Banks should also speed up to thefinancial business integration change, to speed up financial legal systemconstruction and supervision mechanism. Through the implementation of thesemeasures, China's four major business the efficiency of the bank, and theinternational competitiveness promoted step by step will also further revealed.