Research Of Chinese City Commercial Banks' Cost Efficiency Based On Data Envelopment Analysis

The financial industry is the core of modern economy, and commercial banks as the main body of China's financial system are the lifeblood of our national economy. 80 years since the 20th century, China's commercial banks has made considerable progress.The four major state-owned banks have implemented restructuring and became the main force in the domestic financial sector.The national joint-stock commercial banks achieved a rapid development and have become an important force in the financial markets .Worthy of our attention to a variety of city commercial banks have also set up.They have become a favorable domestic banking sector supplement.City commercial banks in the banking system in China play a very important role. The basic characteristics of the structure of China's banking sector is the main state-owned large commercial banks, mainly for large enterprises and large projects to provide financial services investment and financing activities. City commercial banks work as a service for SMEs in regional financial institutions.The market structure has been in such a special position, with significant effect.Based on the study of the cost efficiency of commercial banks at home and abroad ,the paper takes the cost efficiency of city commercial banks as the research object, and makes the analysis on the basis of the theory, and calculates the cost of the efficiency of urban commercial banks.The results of in-depth, systematic analysis to improve the efficiency of Chinese commercial banks should help us to adopt ways and measures to improve the efficiency of urban commercial banks .These will contribute to resource allocation optimization and efficiency improvements.At the same time, these will help regulatory authorities assess the effect of adjustment and provide the necessary basis for regulatory policy.