A Positive Analysis Of Influence Factors Of China Commercial Banks Efficiency

After joining the World Trade Organization, China's banking industry faces more fierce competition outside and inside, especially in science and technology developing very rapidly, many multinational banks have obvious advantages in allocation of funds, types of assets, cost control and business benefit etc. Therefore, how to objectively evaluate the efficiency of China's commercial banks and competitive capability, analyze their competitive condition, to help China's banking seize the opportunity, ensure a smooth transition and strive for the international competition position, which is vital for banking industry development and also for the financial system reform. In other words, studying their efficiency condition and the influencing factors appear to be particularly significant, on one hand, it can reveal and confirm the bank efficiency status, influence factors and effect degree, on the other hand, it can provide us scientific theoretical basis to guard against risks and improve efficiency, in order to help the commercial banks to raise their competitive.On the basis of analyzing the domestic and foreign scholars' literatures on the bank efficiency, This paper adopts both qualitative and quantitative point to study the technical efficiency of four state-owned banks, nine shareholding commercial banks and three local commercial bank from 2004 to 2010, and then analyzes results with lateral and vertical.This paper mainly use the method of data envelopment analysis (DEA) to calculate technical efficiency, scale efficiency and pure technical efficiency, and comparatively analyze of these results and their differences, finally find that the four state-owned banks' technical efficiency and scale efficiency is far lower than the shareholding banks' corresponding efficiency value. The innovation of this paper is to choose banking input and output variables in the process, not only based on the previous domestic and international research of options, but also China banking industry's own characteristics. According to the variable selection principle, this paper correlated with the degree of quantitative selection, which is more reasonable and persuasive.On this basis of above, this paper use macroscopic, industrial and microcosmic layers to analyze qualitatively the factors of influencing China commercial banks'efficiency. Then it uses the technical efficiency value as the dependent variable, which is calculated by DEA method, and does the regression analysis by econometric method. Through the regression analysis results, this paper finally finds that ownership structure, capital adequacy ratio and loan to deposit ratio are showed significantly positive correlation with their efficiency. The bad loans ratio has significantly negative correlation with their efficiency. Assets and bank efficiency have negative correlation, but the correlation is not significant. There is a positive correlation between Non-interest income and bank efficiency. From them, this paper listed measures to improve China's commercial banks' efficiency.