The Determination Of Huishang Bank’s X-Efficiency Based On SFA And The Analysis Of Influencing Factors

The city commercial banks started to expand their branch in other cities since2006. In recent years, management and risk problems exposed gradually. In2010year, regulators started to pay attention to off-site expansion of urban commercial and highlighted the city commercial banks to accelerate the transformation of development mode, to go different development path, to raise the overall risk management and control capability, to focus on risk prevention and control, to enhance the ability of financial innovation, and become an important force in promoting local economic development. Huishang Bank is facing of the regulators on the city commercial banks, and facing an intensely competitive market environment at the same time. Huishang Bank is the first one reorganization of a number of city commercial banks and how to adjust its management to deal with the complexity of an external environment?This paper attempts to study the management level and the status quo of Huishang Bank from the bank X-efficiency point. First, the paper uses of the SFA (stochastic frontier) methods measure the2006-2010X-efficiency of32commercial banks, analysis of the X-efficiency differences between Huishang Bank and other commercial banks. Second, the paper analysis the impact of city commercial banks, in particular, impact of Huishang Banks. Finally, the paper suggests Huishang Bank to enhance its X-efficiency by different methods.The main conclusions of the study include:(1) Huishang Bank’s average cost efficiency is higher than the state-owned banks and joint-stock banks, but lower than the sample of city commercial banks. Cost efficiency is rising year by year from2006to2010.(2) The average profit efficiency of Huishang Bank is in9of the city commercial banks, and lower than the state-owned commercial banks and city commercial banks. Profit efficiency also is rising year by year from 2006to2010.(3) The prominent factors affect the efficiency of Huishang Bank include:high the proportion of state-owned shares, high the proportion of investment assets in the asset quality and lack of innovation.