The Determination Of Commercial Banks' Efficiency And The Analysis Of Influencing Factors Of Zhejiang

With the acceleration of banking reform, the efficiency of commercial banks become the focus of the people once again. The efficiency of commercial banks is the contrast between the input and output or the cost and benefit,which happens in the business activities of the commercial banks. Most previous scholars analysis the operating efficiency of their own domestic commercial banks, also they make a horizontal comparison between the operating efficiency of domestic commercial banks and foreign commercial banks. We found that most scholars think that the operating efficiency of domestic commercial banks is better than foreign commercial banks. Most of the scholars of the past only analysis the operating efficiency of Nationwide commercial banks, but they are less of the analysis of regional banks. And this paper is based on the existing research at home and abroad, it measures the efficiency of commercial banks in Zhejiang and make regression analysis of the factors affecting the banking efficiency with the actual situation of the banking industry in Zhejiang and various financial indicators.This paper measures the technical efficiency, pure technical efficiency and scale efficiency of 15 commercial banks in Zhejiang between 2003-2007, which uses non-parametric data envelopment analysis. The conclusion is: The efficiency value of Shanghai Pudong Development Bank, China Citic Bank, China Everbright Bank and Industrial Bank is higher than that of other banks. The Ranking of Four state-owned banks is last. Overall, the operation of joint-stock banks is better than state-owned commercial banks.Then this paper makes empirical test using the overall technical efficiency as the dependent variable, using asset size, rate of non-performing assets, inventory ratio as independent variable. The conclusion is: the impact factor of Assets on the efficiency is-0.0076, the impact factor of Non-performing assets rate on the efficiency is -0.074, the impact factor of deposit ratio of the efficiency is -0.158, Assets, non-performing assets rate and deposit ratio was negatively correlated with efficiency of bank. The Requirements is that commercial banks should change the business strategy, which is the request to expand the scale of commercial banks to improve efficiency; should reduce the rate of non-performing assets as an important task; should be appropriate to increase the size of loans to improve banking efficiency.Finally, the paper makes the policy recommendations for the internal factors affecting the efficiency of commercial banks: Adjust the scale and focus on operating efficiency; Improve bank management and optimize the construction of process bank; Strengthen credit management and improve the allocative efficiency of credit funds; Develop intermediary businesses actively and enhance the level of financial innovation; Strengthen financial supervision and improve the performance of banking supervision; Innovate the way of non-performing assets and improve the efficiency to dispose non-performing assets disposal; Improve the quality of human resources and enhance human resources management.