Comparatively Analyze And Empirical Research China’s Commercial Banks Efficiency

China’s commercial banks, from the date1970s, has been30years of development history. Thriving, from the state-owned commercial banks occupy a monopoly position, to the formation of state-owned commercial banks and joint-stock commercial banks co-exist, foreign banks will gradually join the competition situation. However, initially due to the state-owned banks occupy a monopoly position, and like other state-owned enterprises, but also produce inefficient, bloated, overstaffed, bloated drawbacks. After30years of development, how the whole efficient of China’s commercial banks? How the gap of the efficiency between state-owned commercial banks and joint-stock commercial banks? And what factors affect the efficiency of commercial banks in China?In this paper, the auther made a comparative analysis of the efficiency levels of14commercial banks in China from2004to2010by the non-parametric data envelopment analysis method (DEA). The mainly objective is to compare the changes of efficiency from the three state-owned commercial banks of the Industrial and Commercial Bank of China, Bank of China, China Construction Bank had been listed in2005, and whether these banks listed effect the operational efficiency of the other joint-stock banks in China. The analysis showed that from2004to2010, The average efficiency of China’s state-owned commercial banks worth greatly improved and is slightly lower than the joint-stock commercial banks. But The development trend is unstable and volatile. It can be seen from the chart, the differences of the efficiency values are further increasing trend since2008. The efficiency of a small number of joint-stock commercial banks decline in results. This shows that the share reform of state-owned banks had a definite impact to the operation of joint-stock banks.Secondly, in Chapter4, we use panel data model analysis of the factors that influence the technical efficiency of China’s commercial banks. The empirical results indicate that only three variables that property rights institutions, profit growth and savings and loan ratio effect the technical efficiency significantly under the5%significance level. The other three variables the return on assets, owner’s equity share and the non-performing loan rate were not significant. Later in this chapter we have, post many policy recommendations based on the empirical findings for the state-owned banks and joint-stock commercial banks.