Scale Efficiency Of Commercial Banks In China Analysis Of Factors Affecting

In 1978, the Chinese government made a historic move, decided to take the reform of the reform and opening up policy, financial sector gradually opening up, has attracted many foreign banks rushed into China, and continues to grow and develop, and the government are constantly China Banking reform, this series of changes in China’s banking sector has had a strong impact. China’s banking industry needs to speed up the pace to improve their competitiveness to cope with enormous challenges. The previous total number of studies shows that, in order to improve the banks competitiveness, it must fundamentally improve the bank’s operating efficiency. Commercial Bank of scale efficiency, technical efficiency and pure technical efficiency constitutes the efficiency of commercial banks. Scale efficiency is an important part of bank efficiency in various cities, we can see the branch network of the major banks have mushroomed continuous emission, the number of workers also increased, the size of China’s commercial banks apparently continued to expand. This article on the choice of angle for the study of one aspect of the efficiency of the scale of China’s commercial banks, hope through research to be able to see the scale of China’s commercial banks are now the size of the efficiency of state, showing the size of state, whether they need to continue to expand its scale or need to control the scale.This paper first introduces the relevant meaning of the efficiency of commercial banks as well as influencing factors, and then introduced an important component of the banking efficiency scale of commercial bank efficiency, which is the definition of the content of this study. And scale efficiency estimates from the two parameter method, and nonparametric methods, and highlights the basic principles of the DEA model and the Tobit model. In addition, the overview of China’s commercial banks to carry out a comprehensive introduction. Finally, the empirical course of the study years Financial Statistics Yearbook and the bank’s annual report on China’s 14 commercial banks in 2000-2009 10 years of relevant data collected to determine the tier-1 capital, number of employees’net fixed assets, and loanable funds to establish DEA model for input indicators, loans and total profit for the output indicators. Model DEAP2.1 software come to the 14 commercial banks in the five state-controlled commercial banks, scale efficiency is not satisfactory, the scale efficiency of small and medium-sized commercial banks far more than the five large commercial banks, commercial banks in China as a whole presents slow scale efficiency rising phase, which is consistent with the conclusions of previous scholars. Then, in the DEA model analysis based on the use of the Tobit model to analyze the influencing factors of China’s commercial banks to determine the main factors of a capital, the number of employees, market share and structure of property rights affect our business, the Tobit model and found that The four elements related to the influence of the scale efficiency of China’s commercial banks and the degree of scale efficiency. Among them, a capital and the number of workers on the scale of China’s commercial banks efficiency impact is more significant. Through research, we concluded that:small and medium-sized joint-stock commercial banks advanced management system, the number of personnel, staff and the cause of cost-sharing rate is relatively low, non-performing loan amount is less than the large commercial banks, loans to high quality, scale efficiency high; there is an upward trend in the scale efficiency of the entire commercial banking system, improve the space is still relatively large, long term, the scale efficiency of commercial banks in China has great potential; scale efficiency is a broad range, not a fixed value commercial banks in China should be based on the management level and technical level to determine the level of the size of banks; factors affecting the efficiency of the scale of China’s commercial banks are varied to improve the efficiency of scale to be truly effective, it must be a variety of factors The analysis takes into account.According to the results of this paper put forward policy recommendations to improve the efficiency of the scale of China’s commercial banks. In this paper, several aspects of the management level, technical level, financial innovation, and reform of property rights to propose a solution. That commercial banks in China should first use of modern electronic information technology to improve the technological level, strengthening the capacity of financial innovation, in order to expand the boundaries of the economies of scale. Secondly, the optimization of risk management mechanism, to reduce non-performing loan ratio to improve the level of the bank’s management. Again, through the deepening of the Corporate Governance system, reform of property rights, clear property right structure, prompting the diversified ownership of commercial banks in China. Finally, our government is necessary to improve the banking market exit mechanism, enhance the sense of competition of commercial banks.