Efficiency Research Of China’s City Commercial Banks Based On DEA

City commercial bank is an important power in the development of china’s economics.In fierce competition, a city commercial bank will have a failure business if it doesn’tconcern efficiency in management，allocation and scale. In this essay, efficiency of citycommercial banks of china has been discussed in the theory of DEA. Practically, this essayis necessary for improving the management and development of city commercial banks inchina.In this study, input-oriented Variable Returns to Scale Model (VRS) and theMalmquist Index have been used to calculate technical efficiency， pure technicalefficiency，scale efficiency, input slacks and Malmquist TFP index of35city commercialbanks of china, both of the models are based on DEA theory. Proposals that can improveefficiency of banks bave been put forward after the study of the efficiency indexes obtainedfrom the models mentioned. The efficiencies’ changes of city commercial banks inconsecutive years can be observed obviously by comparing Malmquist TFP index obtained.Deeply efficient problems of city commercial banks are explored on the basis ofconclusions summarized previously. And proposals on how to improve efficiency of citycommercial banks are offered according to the problems.