The Study On Efficiency Of The Listed Commercial Banks And The Influencing Factors In China

Commercial banks, as the principal part of finance, the efficiency is significant tothe running of the economy. The domestic and international studies have confirmedthat the comprehensive efficiency of China commercial banks has enhanced evidently.As for the reasons, the former documents mostly focused on how the microscopicfactors inside the banks make their efficiency improved, and rarely took themacroeconomic environment into quantitative analysis, which assumed that theeconomic environment was unchanged.Obviously, it is inconsistent with the reality, and the conclusion may not beabsolutely correct. Therefore, this paper takes both macroscopic and microcosmicfactors in to consideration, based on that the environment of economy and finance isvarying continually, and discusses that the enhancement of China commercial banks’efficiency is mostly attributed to the growth of economy in our country or the perfectinside management of banks.Firstly, the paper defines that the “efficiency” refers to the microcosmicefficiency of a bank. Then, it measures the profit efficiency of16listed commercialbanks in China by “Stochastic Frontier Approach”(SFA).Next, it divides the influencing factors into macroscopic factors and microcosmicfactors, and analyzes how they influence the efficiency of commercial bankstheoretically. On that basis, the paper uses the value of profit efficiency measured inthe preceding chapter as dependent variable, and chooses5microcosmic factors and6microcosmic factors as independent variables. Microcosmic factors include the levelof economic development, money supply, structure of banking, foreign banks’ entryand the development of direct financing. Microcosmic factors include intermediatebusiness ratio, return on assets, asset scale, resource allocation, asset quality and theoperational level. Then, we may set up a multiple regression model which involves allthe indicators. The empirical result shows that the macroscopic and microcosmicfactors mostly influence the banks’ profit efficiency significantly.Thirdly, by means of “factor analysis method”, the paper makes a furtherresearch on the variation range of banks’ efficiency when I eliminate the influence ofmicrocosmic and macroscopic factors respectively. It is found that when themacroscopic factors are given, the microcosmic factors influence banks’ profitefficiency more. We may draw the conclusion that the decisive factors what influence the banks’ efficiency are microcosmic factors.Finally, according to the anterior conclusions, paper raises some policyrecommendations that are available to enhance the banks’ efficiency, and makessome prospects for the following research in the future.