A Study About Commercial Banks' Efficiency Of Guizhou Province Based On DEA And SFA

Since the reform and opening up for 30 years, China's economic and social development has achieved rapid and established a market economic system, Commercial banks gradually go to the market and the commercialization of the road. With economic globalization continues to accelerate and Increasing trade between countries, so finance has become an important link between communication and the economic interests of the game between countries. In 2008 year,the U.S. subprime mortgage crisis triggered by the global financial crisis once again shows that financial and economic interaction between countries is more and more deeper. So it must accelerate the efficiency of our financial institutions, enhance the internal energy and the core competitiveness and maintain the healthy development, in order to achieve the steady development of economic and social.With project progress of "drawing silver into Guizhou" , financial ecological environment improvement, part of the domestic joint-stock commercial banks enter and the addition of foreign banks,It'll lead to increase competition of financial markets in Guizhou province and Increased competition in the banking industry. It is not a small challenge for Commercial Banks. So studying the efficiency of commercial banks of Guizhou Province and find out the efficiency's situation of the major commercial banks, it help to improve the competitiveness of commercial banks and the banking supervision department of the barriers to entry in the bank will set the reference value.This paper uses stochastic frontier method (SFA) and data envelopment analysis (DEA), Select deposit , number of employees and network operators of bank, then there are seen as input indicators, bank loans and pre-tax profit are seen as output indicators, used directly Frontier 4.1 software program and Deap2.1 by University of New England, Australia Coelli (1996) prepared, Guizhou Province's seven major commercial banks between 2001-2008 individual output technical efficiency loans and Profits of individual technical efficiency and overall output technical efficiency were estimated.DEA methods measure the efficiency of integrated technology show that Commercial Bank of Guizhou Province during the sample comprehensive technical efficiency increased year by year, large amplitude, Bank of China was the lowest efficiency value of 0.48 in 2005, the highest are the Industrial and Commercial Bank and Agricultural Bank, efficiency value is1. Agricultural Bank of China's average efficiency is up to 0.953, Bank of China's the lowest efficiency value is 0.604. As a whole, overall efficiency values are not generally high, especially joint-stock commercial banks'efficiency value are generally low, there are to be upgraded.SFA measure technical efficiency of single output show that Zunyi City Commercial Bank's loan minimum of output technical efficiency is 0.712 the value of loans to a minimum of output technical efficiency 0.712 in 2001, Loan's most efficient are the Bank of China and China Construction Bank,it is 0.984, Zunyi City Commercial Bank's average minimum lending efficiency is 0.88, average high lending efficiency is Industrial and Commercial Bank,it is 0.926, The efficiency of the bank's loans showed a rising trend year by year. From the profits of commercial banks during the sample efficiency point of view, Commercial Bank of the least efficient is only 0.399 in 2001, Bank of maximum efficiency is 0.966 in 2004, the highest average efficiency is China Construction Bank, Sample average profit efficiency is 0.891, the least efficien is bank Industrial and Commercial Bank of China, sample average profit efficiency is 0.788, but with the Industrial and Commercial Bank joint-stock reform, efficiency has been greatly improved profits since 2006.Empirical research shows that overall efficiency is higher than profit efficiency loans, Comprehensive technical efficiency is higher than profit efficiency and overall efficiency is not high; From a different point of view of Ownership structure, average technical efficiency of state-owned banks are higher than comprehensive joint-stock banks, the efficiency of state-owned bank loans higher than the average joint-stock banks, profits of state-owned banks less efficient than joint-stock banks; In the sample period, commercial banks'comprehensive technical efficiency, loans efficiency and profits efficiency have progress.Affecting the efficiency of commercial banks in Guizhou factors show that market competition is not intense, the overall size of state-owned banks accounted for too large, low economic level, poor financial environment, Commercial banks own lack of innovative capacity, intermediate business income is too low, high rate of non-performing loans, excessive concentration of credit, low processing capacity of information technology, integrated high-end financial talent shortage. These led to low efficiency of commercial banks of Guizhou.Guizhou's commercial banks'efficiency profits are low,but the reasons for the high efficiency loans is the number of loans not fully translate into improved quality of loans,but with the joint-stock reform of state-owned banks, loans efficiency is rising, at the same time, efficiency is also rising profits, Loans to improve the efficiency ratio exceeds. This indicates that commercial banks in Guizhou, the use of integrated technologies, management ability, market environment, have been effectively improved.For factors influence the efficiency of Guizhou's commercial banks, authors propose: Adjust scale, achieve economies of scale; Adjust structural of redit, ensure the quality of loans; Improve service quality, maintaining banking relationships; To develop intermediary businesses, accelerate the pace of financial innovation; Improve staff quality, speed up the process of informatization; Create a favorable financial environment, enhance the bank's overall service level.