An Empirical Study On Operational Efficiency And Its Influencing Factor Of Rural Commercial Banks In Southern Jiangsu

Along with the 2008 financial crisis, the Macro-economic situation domestic and outside is complex and ever-changing. After China's WTO transition Period, the deepening economic globalization and regional economic integration have push the step of financial system reform in our country as our financial industry open to the outside world even wider. On the part of the market, the capital market and exchange rate is still in reformation, while interest rates is in liberalization reform. On the part of internal industry environment, rural commercial bank are facing with unprecedented pressure and severe challenges when Foreign-funded banks seizing the market fiercely, state-owned banks committing themselves on the share merger reform and IPO, Joint-stock banks and city commercial banks absorbing boundless foreign capital and rural credit cooperatives and China Postal Savings engaging themselves in ongoing reform. The rural commercial bank in southern Jiangsu which traced as early as the rural credit cooperatives could be regarded as typical model for the rural commercial bank in china and the main driving force behind the southern Jiangsu rural financial reform. In recent years, rural commercial banks in southern Jiangsu have consolidated its regional competition through alleviating the blank of financial supplier in northern Jiangsu by rural finance " South to North Water Project" while they are stepping up their pace towards listing on the market. All of this will need the support of the strong compatibility of the rural commercial bank.Firstly, we make a descriptive statistical analysis of the present developing situation. Then we develop a system of indexes on evaluating the financial performance of the rural commercial banks in southern Jiangsu. Then we calculate the index of bank's operating efficiency through factor analysis evaluation. While the technical efficiency and scale efficiency through DEA model. Along with other financial indicators. Lastly, we establish pooled regression model to analyse the factors influencing on the operating efficiency of the rural commercial banks in southern Jiangsu.Based on the study,we can conclude that,on the whole, in recent years, the overall tendency of the operating efficiency of rural commercial banks in southern Jiangsu is rising,though minor fluctuation still exists in 2008. In addition, with the passage of time, the differences of the operating efficiency of rural commercial banks in southern Jiangsu between in increasing, and the speed of difference in is likely to accelerate. The most important factor acting on the operating efficiency of rural commercial banks in southern Jiangsu is equity structure, equity type, loan market share and the time of establishment. Therefore, based on the empirical analysis results, we consider that to improve their own operating efficiency and obtain the status of the market in the fierce competition, rural commercial banks should be focused on improving its technology and system, talent, process, the strategy and characteristic.