Research On The X-efficiency Of Intermediary Business Of Commercial Bank In China

With the development of economic globalization and economic liberalization,Chin-a’s financial market is gradually opening up, foreign banks swarm into China’s financial market, which has brought great challenges for China’s commercial banks, together with the gradual deepening of the financial disintermediation and further promotion of China’ s interest rate liberalization, the source of income from commercial banks’ traditional businesses-interest income has been decreasing and showing great risk.With the featu-res of low risk and high profit,intermediary business presents huge development potent-ial,and has been an important avenue for commercial banks to increase their level of profitability. Intermediary business and traditional businesses complement each other, the development of the former can contribute to the banks to provide customers with a wide range of financial products and services, so as to promote the development of asset and liability business,which allows commercial banks to adjust their development strat-egies and carry out intermediary business vigorously,intermediary business shows more and more significant impact on the banks, its development level has gradually evolved into an important evaluating indicator of the banks’ comprehensive strength. However intermediary business in China is at an early stage of development and has great potent-ial of development,in fact,the business also highlights a series of problems,analyzing its its X-efficiency has important practical significance.This thesis treats intermediary business as an individual,on the basis of the theories of intermediate business and the X-efficiency theory of commercial bank, applies the DEA to estimate the X-efficiency of intermediary business and Malmquist productivity index, and then uses the resulting X-efficiency values as explained variable, meanwhile, assumes some affecting factors of the X-efficiency as the explanatory variables,and app-lies the multiple regression analysis to each factor by Eviews software to asess the imp-act of various factors,at last proposes a series of X-efficiency recommendations to impr- ove the intermediary business in China which will provide a reference of the relevant aspects of the business asessment and business strategies for business bank administrat-or to draft appropriate business planning and develop intermediary business.Firstly, the thesis reviews the theories of intermediary business,the learning theori-es of intermediary business and the theory of X-efficiency, analyze and summarize the development status and problems of China’s commercial banks. Secondly, the paper introduces several measurements of the X-efficiency, lays emphasis on presentations of DEA method,CRS and VRS model and DEA input-output variable selection method. Again,based on analysis of the theory of intermediate business and bank X-efficiency, the paper apply DEA method to analyse X-efficiency of intermediary business and Malmquist productivity index among14domestic commercial banks from2006to2011,and elaborates many factors affecting the development of intermediary business, then applies the multiple regression analysis to each factor by Eviews software to meas-ure the degree of influence of each factor. Finally, combining the above theoretical and empirical analysis, the thesis proposes a series of X-efficiency recommendations to improve the intermediary business in China, including:strengthen the awareness of intermediary business, change the business strategies; enhance the management level, establish a scientific and rational management system;increase the technology investme-t efforts; strengthen financial innovation, expand the varieties of intermediary business.