Research On Guangxi Commercial Bank Competitiveness By Using Data Envelopment Analysis

Finance is the core of modern economy, and the banking is the mainstay industry of the finance industry. As the most convenient access to the sea of Southwest, Pan Beibu Gulf economic circle which led by Guangxi is continuous developing and growing. The banking industry timely keep up with the pace of Guangxi’s economy is particularly important. How effectively raise commercial banks’overall competitiveness in the region is a major issue which is related to Guangxi’s financial stability as well as the overall economic development. Therefore, making objective, comprehensive analysis and evaluation on current competitiveness of Guangxi’s commercial banks, and creating effective strategies to promote competitiveness, has immeasurably theoretical and practical significance. This issue uses Data Envelopment Analysis method (DEA) to carry out empirical analysis on the competitiveness of Guangxi’s commercial banks, and put forward suggestions on the basis of the analysis in order to promote faster and healthier development of Guangxi’s banking industry.In order to making more scientific, accurate assessment of the region commercial banks’competitiveness, the paper chose the four major state-owned commercial banks and seven joint-stock commercial banks as decision-making units, and uses DEA models as a tool to evaluate their relative effectiveness. DEA is a classical method to evaluate the efficiency, has the advantages which other methods can not be replaced, and has a deeper economic significance when used to evaluate the competitiveness of commercial banks. Analyzing2010original data of sample banks, we get the preliminary empirical results. On this basis, we establish commercial banking competitiveness evaluation index system which hold deposit and loan rates, cost-income ratio, core capital adequacy ratio, governance structure, business processes, employees’cultural level structure as the core to compare and analyze the actual level of competitiveness of the five sample banks in Guangxi region, then we can test the accuracy of DEA model analysis results.Facts have proved that the conclusion get from the DEA model is the same as the one drawn from the evaluation system:In2010, the overall efficiency of Guangxi’s commercial banks was not high, and the competitive was relatively weak. The competitiveness of non-state-owned joint-stock commercial banks is generally higher than state-owned commercial banks. This indicates that DEA model can make an accurate and scientific judgment on the competitiveness level of Guangxi’s commercial banks, and can be used in practice to guide the development of commercial banks. Finally, combining with the reason analysis of competitiveness weakness of Guangxi’s commercial banks, the author summed up following suggestions:to reduce non-performing loan ratio of banks, establish a new concept of risk management; optimize capital structure, improve capital add mechanism, and enhance ability to resist risks; establish core talent training mechanism, and give full play to the role of human resources; nurture innovative brand image to create products to meet market demand; create a conducive policy environment for competition among banks, to firmly establish the scientific concept of development.