Study On Efficiency Evaluation Of Postal Savings Bank Of China

On2007, following the example of the four major state-owned banks, with a development goal of becoming a large-scale retail commercial bank, Postal Savings Bank of China was separated from China Post. In just a few years of independent operations, Postal Savings Bank of China has obtained some achievements on credit business, company business, credit card business, bills business, and private banking business. As a new bank developed from postal savings and foreign exchange business, can it really spin off from the postal system? In addition to the interest income of traditional business, how far is its non-interest income away from the forefront of banking industry? Under a certain scale, how much disparity does its income and profit level have with the four major state-owned banks and other joint-stock banks?How to improve the efficiency of the bank? These issues all are worth going deep into investigation and discussion. Therefore, on the basis of analyzing Postal Savings Bank, this paper studies the efficiency of China's banks with a view to finding out the deficiencies of Postal Savings Bank of China, which will do much to the reform of the bank, and have important practical and theoretical significance in improving bank efficiency and profit ability.This article first introduced the history of China's banking industry and the development of Postal Savings Bank of China, proposed the background and significance of studying China's bank efficiency, reviewed the current situation of bank efficiency at home and abroad, defined and classified bank efficiency, systematically organized the method of defining input and output, introduced the parameter method and the non-parametric method of measuring bank efficiency.Based on the study sample of18banks in2009, choosing the amount of labor, the number of outlets, and the loanable funds as input variables on behalf of the bank's human, material and financial input, interest income and non-interest income, total revenue and net profit as the two sets of output variables, this article researched technical efficiency, scale efficiency of the18banks with data envelopment analysis. The results showed that on Set2, there was a certain gap between Postal Savings Bank and other banks in this two kinds of efficiency, and the upward trend of scale efficiency showed that the expansion of Postal Savings Bank could bring a higher marginal effect. As another point of view, choosing the amount of labor, the number of outlets, and the loanable funds as input variables, total revenue and profit as output variables, parameters of the stochastic frontier function were fitted with stochastic frontier approach. The income efficiency and profit efficiency of the banks were calculated with this function. The results showed that there was a large gap between Postal Savings Bank and other banks in profit efficiency, and Postal Savings Bank was still stuck on the "high-input, high-yield" low efficiency level, just like in the China Post age.According to the conclusions of the data envelopment analysis and stochastic frontier method, this article analyzed the advantage and disadvantage on Business tradition, capital adequacy, asset quality, network distribution and network technology of Postal Savings Bank, and brought up the suggestions and measures to improve marketing ability, strengthen the service level, reduce the operating cost, change outlets features.