The Empirical Study Of The Frontier Efficiency And Efficiency Factor Of China’s Listed Commercial Banks Based On DEA Method

Along with the deepening banking sector openness, China’s commercial bankswill face more intense competition from foreign banks, and won the competition forsurvival and even greater development is the key to improve their operationalefficiency. Due to historical reasons, China’s commercial banks have been relativelylow efficiency, but since2003, in order to enhance the overall competitiveness ofChina’s banking industry, government and regulatory authorities have accelerated thepace of reform of China’s commercial banks, through the introduction of joint-stockreform, public offering market, multi-channel financing to improve the capitaladequacy ratio, strengthen loan quality management, the ability to optimize theirresources, enhance the management level, increase investment in informationtechnology innovation and a series of initiatives to promote banking managementlevels. However, banking sector reforms to improve the efficiency of commercialbanks operating effectiveness, is significantly enhanced our market competitivenessof commercial banks, China’s financial sector is worth further study.This paper is based on efficiency theory and efficiency theory of commercialbanks, make the "efficiency measure Evaluation-influencing factors analysis-efficiency improvement approach" as main line, follow the "first theory,post-positivist, and then measures," the basic idea of a study, use DEA Methodanalysis the cost efficiency, technical efficiency, allocative efficiency, scale efficiency,pure technical efficiency and Malmquist total factor productivity of China’s15listedcommercial banks.Empirical results show that, overall, the efficiency of urbancommercial banks is highest, followed by joint-stock commercial banks, while theefficiency of the four major state-owned banks is the worst. Then use the Panel DataModels to analyze a variety of factors of influencing efficiency, the results show thatthe efficiency of macroeconomic factors have a significant positive role in promotingthe efficiency of the commercial bank. The financial industry structure show asignificant negative impact on the efficiency. In the end on the basis of evidence putforward to improve the efficiency of China’s commercial banks way.