Guangdong City Commercial Banks Efficiency Research Based On DEA

With the rapid development of China ’s financial industry, city commercial banks are alreadybeing distributed in major cities to become an important part of China ’s financial system。Citycommercial banks have continued been restructuring transformation and go on trans-regionaloperations with remarkable achievements,instead of focusing only on local financial servicespreviously。But it also create some problems at the same time。After experiencing a largeexpansion,the City commercial banks have obviously slowed the growth rate,some banksoperate inefficiently and non-performing assets ratio is too high,which profitability is not strongwith a higher risk。Facing the crueler market environment, city commercial banks need a clearunderstanding of the gap between itself and other banks with good development trend, to findout the crux of the problem so as to improve their competitiveness。The Guangdong City Commercial Bank’s efficiency is directly related to the health andstability of the financial system of Guangdong,which is very important to Guangdong cityeconomic and financial development。This paper used DEA model to analyze the efficiency ofGuangdong Province’s five city commercial banks,and then compared them with the state-ownedcommercial banks and joint-stock banks, to get comprehensive evaluation and recommendationsfor better development。On this basis, this paper further tested with the traditional competitiveevaluation methods：using the evaluating indicator such as bank size, asset quality, capitaladequacy ratio, the level of technology, governance structure, business content, staff culturallevel structure to compare the actual level of competitiveness of the5sample banks inGuangdong to prove the accuracy of the results of the DEA model。...