The Analysis And Comparison Of Operating Efficiency Of Commercial Banks In China And Foreign Countries

The banking sector is the main body of China’s financial industry. It is also the lifeblood of China’s national economy. Commercial banks play an important role in economic life. In the past two decades, with the globalization of financial markets and financial institutions, the banking environment is becoming more international competitive and intense.The competition in the banking sector will largely be turned to efficiency competition. Its efficiency is not just related to the banking system of its own development and healthy functioning, but also a very critical factor in the macroeconomic performance of the entire country. The large number of empirical studies has shown that the operating efficiency of financial intermediation will affect economic growth. Other studies have shown that the banking industry failure will lead to a systemic crisis and a negative impact on the national economy as a whole. In face to the open international markets and an increasingly competitive domestic market, the most pressing issue of China’s commercial banks is how to maintain a minimum cost and accelerate the pace of reform of commercial banks to improve the operating efficiency of Chinese commercial banks. Therefore, the operational efficiency of commercial banks in China has become an urgent and important task which has important significance.In this paper, it uses data envelopment analysis (DEA) analysis on China and foreign well-known12commercial banks operating efficiency measure based on2008-2012data sample financial indicators to achieve efficiency of12commercial banks. Because the DEA method to measure the input and output indicators selected for the efficiency measure has a significant impact, the indicator we choose is a combination of commercial banks operating characteristics and DEA model. Finally we decide to use the liabilities total operating costs, net interest income and deposit cash flow input-output indicators to help finish an empirical analysis of12commercial banks’operating efficiency calculation and the results ranking. At the same time, depending on the nature of the sample banks, the results were classified on the basis of the horizontal and vertical analysis. Not only help the direction of the reform and development of the different types of commercial banks to provide guidance and to reduce the blindness of the reform and development, but also help to, reduce costs, and more help to improve the international competitiveness of China’s banking to meet international standards as soon as possible.