An Empirical Study On Operating Efficiency Of China’s Commercial Banks

As the main body of China’s financial system, commercial bank plays a privotal role in the process of economic development. Its operation efficiency is not only related to survival and development of every commercial bank, but also directly affects the future stability and development of China’s financial industry. Especially under the circumstance that the financial industry has been fully open to the outside world and the gradual deepening of the joint-stock reform of state-owned commercial banks, to research and evaluate the operational efficiency of commercial banks in China is not only to better serve our country’s financial supervisory authorities to develop targeted regulatory policies scientific theory, but also to help all commercial banks to compare the efficiency gap with other banks, to find ways to improve efficiency levels and raise the overall competitiveness of China’s commercial banks.On the basis of reviewed a large number of domestic and foreign literatures about banks operating efficiency, this paper measure the efficiency of commercial banks and influencing factors from the dynamic point of view. Firstly, this paper utilized the improvement of "vertically and horizontally to scatter" to measure and analyze the operational efficiency of China’s16listed commercial banks during the period of2006to2010. Then the thesis analyzed the determinants of the efficiency of commercial banks by further conducting regression analysis with Panel Data. And hence, we could explain the causes of the difference of efficiency between two types of banks. Though the above analysis, the conclusions which the thesis drew are as follows:(1)In China’s commercial banks, the operating efficiency of two city commercial banks which are Bank of Beijing and Bank of Nanjing is best while state-owned banks poor. The operating efficiency of state-owned banks is significantly lower than the city commercial banks and new joint-stock banks, Agricultural Bank of China is extremely unsatisfactory, which listed the end of other banks.(2) Bank of Beijing, Bank of China, Construction Bank, Bank of Nanjing, Minsheng Bank and Industrial Bank show strong stability, and China Guangda Bank and Shenzhen Development Bank’s operating efficiency is very unstable,during the study period clearly demonstrated the leaps and bounds state.(3) The regression results of panel data model show that bank size, the stability of banks and risk-resisting ability of commercial banks and operating efficiency is negatively correlated; banks’ profitability, asset allocation, financial innovation and property rights structure of commercial banks has a positive impact on operational efficiency. Bank profitability is the greatest influencing factor, the regression coefficient is88.377. Diseconomies of scale, unclear system of property rights and lack of innovation motivation are the main reasons that the operating efficiency of state-owned banks is lower than the joint-stock banks.