An Empirical Study On The Efficiency Of Commercial Banks In Gansu Province

As the financing intermediaries, commercial banks shoulder an important mission to pave the way for the economy and society development, Gansu is a province with relatively backward economic developing condition, without the support of commercial banks and other financial institutions, the economy will not develop smoothly and healthily. The commercial banks in Gansu Province can better play their role in the economy and society development with the promotion of financial services and the improvement of operational efficiency. Thus, to find out ideas to improving the financial services level and operating efficiency of commercial banks in Gansu Province, this paper selects dates from2008to2001, applies non-parametric DEA method to measure and analyze the efficiency of the eight commercial banks in Gansu Province, also it uses the Tobit model managing the limited dependent variable to make some research about the efficiency influencing factors.This paper will do the empirical study on the efficiency of the sample banks in the following sections. First, make an essential summary and assessment of the related domestic and foreign literature on the commercial banks studying, then, state the theory of the efficiency of commercial banks based on the summary and assessment, and classify and illustrate methods studying the efficiency of commercial banks. Second, determine the basic idea of commercial banks efficiency measurement with the input and output analysis based on related theory, and taking operating expenses and bank deposit as input index and net interest income and non-interest income as the output indicators, apply non-parametric data envelopment analysis (DEA) to do the empirical analysis of efficiency on the commercial banks in Gansu Province from the point of technical efficiency, pure technical efficiency and scale efficiency. Third, choose deposit-loan ratio, return on assets, the proportion of intermediary business, assets expense ratio and asset quality as empirical analysis indicators of efficiency influencing factors, take efficiency value measured by Non-parametric DEA method as the dependent variable, and apply the processing limit Tobit model, this paper does empirical analysis of factors affecting the efficiency of sample bank based on the research of technical efficiency, pure technical efficiency and scale efficiency. The results showed that the higher of deposit-loan ratio, return on assets, the proportion of intermediary business, assets expense ratio and nsset quality is in favor of bank efficiency, raising the rate of asset costs can not significantly improve bank efriciency. At last, this paper draws the research conclusions and put forwards the related countermeasures and suggestions based on the above empirical analysis.This paper put forwards the relevant countermeasures and suggestions from the following sides to improve efficiency and competitiveness of sample commercial banks in Gansu Province through the empirical study of efficiency of commercial banks in Gansu Province. First, develop the intermediary business and conduct business innovation; Second, strengthen internal management to improve operational efficiency; Tthird, strengthen the loan fund management to improve asset quality.