The Empirical Research On The Operating Efifciency And Restrictive Factors Of Shandong Province City Commercial Banks

With the full liberalization of Chinese banking and the increasingly intensecompetition among domestic banks,efficiency is the centralized reflection of thecompetition ability of banking industry, Inter bank competition essence is efficiencycompetition, Therefore, To improve the efficiency of banking industry is to prevent bankrisks, Fundamental for achieving sustainable development.Financial system as a special group in the City commercial banks throughdevelopment of ten years, great progress has been made in the development.Strength hasbeen continuously upgrade.Development plays an increasingly important role in the localeconomic. But, because of its particularity, City Commercial Banks in the development ofall sorts still exist shortcomings. Therefore, operating efficiency research on Chinese citycommercial banks to explore the efficiency of the restricting factors, both help to enrichour country commercial bank management theory system,and also contribute to a profoundunderstanding of China’s city commercial banks efficiency problems. Based on this, andconsidering the data availability, the paper selects Shandong Province as the example ofChina’s city commercial bank efficiency to study.Firstly,based on the analysis of the theory of banking efficiency defines the basicmeaning of city commercial bank efficiency. On the frontier analysis of two commonlyused models the DEA model and SFA model,advantages and disadvantages are bothcompared, Choose to use the DEA three stage model to analysis Shandong city commercialbanks operating efficiency for empirical analysis.Secondly,The analysis focuses on three theoretical perspectives of the bankingindustry input and output index selection and selected input indicators (total assets, totaldeposits, the number of workers) and output indicators (interest income, interest income)of Shandong province city commercial bank efficiency determination. Comprehensivelyconsiderate the business development present situation as well as the economic andbusiness environment of Shandong city commercial banks, of selecte two importantenvironmental variables that effect the bank efficiency: the establishment time of the banksand the number of bank branches. Choose the13Shandong city commercial banks assample and exert the DEA three stage model calculate the bank technical efficiency valuebetween2007-2010of each sample, and analyze the empirical results which was calculatedby the three level of DEA model.Then. Combined with some domestic and foreign research and present situation of Shandong city firm, and presuppose bank scale, profit ability, innovation ability, stability,operation management, asset allocation, the quality of loans, equity structure these ninevariables as the Shandong City firm’s efficiency constraints. Make the calculated banktechnical efficiency value of each sample in2010-2007s as dependent variables and thepresupposed constraints as independent variables, through the stepwise regression can findthat: among these nine factors, only innovation ability, the quality of loans as well as theprevious ten holding proportion of large shareholders affect the banking efficiency ofShandong city commercial banks significantly. And, Innovation ability has remarkablepositive correlation with the efficiency of these banks, the quality of loans and the top tenshareholders ownership has remarkable negative correlation with the efficiency of thesebanks.Last. Based on the summarize of the current situation of the Shandong City firmbank efficiency constraints, the paper put forward further countermeasures and suggestionsto improve the efficiency of city commercial banks in Shandong province from theseaspects:strengthen financial innovation and develop intermediate business energetically,strengthen risk management and reduce the rate of bad loans and local government’sinterference, optimize the ownership structure of these banks etc.