The Analysis Of Cost Efficiencies Of Listed Commercial Banks In China

Bank efficiency is the relationship between inputs and outputs in the banking businessactivities. It reflects the bank’s overall competitiveness, is a measure of an important indicatorof bank health. With increasingly fierce competition in the banking sector in contemporarysociety, the research of bank efficiency plays a very important role.Based on2004-2011of16commercial banks in the panel data, based on the numberbeyond the cost function method using SFA cost efficiency of commercial banks weremeasure. The results showed that the average cost of each bank obvious difference efficiency.Which is the most cost-effective Merchants Bank, Agricultural Bank is the least efficient. Inthe state-owned commercial banks, joint-stock commercial banks, commercial banks, threelocal banks, joint-stock commercial banks’ cost efficiency in the best performance in threebanks, has been in a leading position. State-owned commercial banks enhanced greater costefficiencies. The cost efficiency of local commercial banks at present it is in a lower position,need to be further improved. The cost-effectiveness of three types of banks continued tonarrow the gap. Overall, all three kinds of banks kept rising trend fluctuations.In addition, this paper the main factors affecting the cost efficiency of the correspondinganalysis carried out to select a few micro factors affecting the efficiency of banks for thecorresponding regression analysis, bank risk, capital size, market concentration, loan todeposit ratio of these variables, the efficiency of banks have a significant effect. And on thisbasis, we propose some policy recommendations, including optimization of ownershipstructure, reasonable conduct banking scale expansion, appropriate to maintain the bank’scapital adequacy ratio and improve the bank’s asset quality, and accelerate the development offinancial innovation.