Research Of Chinese Commercial Bank Efficiency Using Super Efficiency Data Envelopment Analysis Model

Recently, the research of commercial bank efficiency has become the emphasis ofthe international financial community and various regulatory authorities. The operatingefficiency of the banking is the comprehensive performance of banking competitiveness,which is also the intrinsic quality of economic development. The management of thebanking efficiency directly affects the entire financial system of the allocation ofresources, which also plays a very important role in fixing economic operation.Improving management efficiency is the key to bank risk management and sustainabledevelopment, which ensures the stable development of the financial market. Since2000,commercial banks in China have gone through the self-system reform and the change ofoutside environment. Though its efficiency has improved to some extent, there is still awide gap comparing to other first-class foreign banks. Based on the real need to have aseat in the increasing financial market of financial integration, it has significantimportance to come up with the measures of improving commercial bank efficiency.In the background, this thesis deals with a great deal of literature at home andabroad, and expands the theory of management efficiency. This thesis defines the bankefficiency, classifies efficiency and lays the basis of analyzing the efficiency ofcommercial bank at the same time. From the macro, macro and micro aspects to analyzethe concrete factors that affect the efficiency of commercial banks. This thesis appliesempirical model and empirical analysis.In order to reflect the operation of China’s commercial banks overall situation, thisthesis chooses twelve Influential state-owned and non state-owned commercial banks,whose total assets, loans and deposits of commercial banks in China and take the sum80%, and whose management ability and management level reflect the overall ability ofthe banks in China. On the basis of traditional DEA model to introduce super-efficiencyDEA model and Malmquist Index model to empirical. First of all, from the commercialbank management ultimate goal-profitability Perspective to redefine bank of input andoutput variables for efficiency evaluation analysis, then the introduction of risk investment index (loan loss reserve) for comparative analysis, which overcomes theproblems that the traditional DEA model can’t deal with, on the other hand, Dynamicefficiency and static efficiency combined horizontal and vertical ground to analyze thecommercial banks of China in the whole sample period efficiency change of status andthe will be difficult to quantify risk factors were also incorporated into the index systemOn the basis of the research, we find out that the efficiency of commercial banks ofChina is rising upward from2000to2010, State owned commercial banks andstate-owned commercial bank also has certain disparity, but the gap is shrinking. Theefficiency of commercial banks in China is rising before2006, mainly due to the stocksystem reform and the entry of foreign banks has intensified competition in the financialmarket. In the2007financial crisis, efficiency level fluctuated significantly down, butthen picks up quickly. This fully shows that the Commercial Banks of our country havecertain stability and they can effectively resist the external impact. In addition, the resultsalso show that China’s state-owned commercial banks before2002mainly invalid due totechnical efficiency scale efficiency invalid. After2002the pure technical efficiency isbecome restrict factor, non-state-owned commercial banks have experienced increasingreturns to scale, the same to the decreasing state, but the pure technical efficiency is high.In the reform process must divide and rule. At the same time contrast research alsosuggests that risk of commercial bank management efficiency evaluation has significantinfluential. We also must fully consider the risk factors for accurate evaluation of bankefficiency. According to the empirical results, the article gives a corresponding increasein the efficiency of Chinese commercial banks and the Countermeasures; includingdeepen reform, the establishment of efficient supervision mechanism, optimal scale,raising the sufficient rate of the capital, technological innovation and strengthen riskmanagement. This thesis also has a summary of the full text and the deficiency of thefuture at the end of the paper.