Study On The Efficiency Of Commercial Banks In Gansu Province

Commercial banks are the main part of the financial system, their development andvitality directly related to the state’s financial security. The commercial banks support thedevelopment of economy in Gansu province and made a certain contribution to guide therational flow of social capital, increase employment and maintain social stability. As thefinancial competition in the market degree deepens, efficiency has become a magic weaponfor commercial banks to enhance competitiveness in recent years.In order to improve the efficiency of commercial banks in Gansu province and promotethe level of its financial services, this article selects ten samples of commercial banks inGansu province as the research objects and select datas from2007-2010，applys DataEnvelopment Analysis method to measure the efficiency of the commercial banks, and byusing Tobit model to study the factors that influence efficiency of sample banks, then putforward the corresponding countermeasures and suggestions.First of all, the paper review and comment the research on bank efficiency domestic andabroad，find out the existing problems in this field, then put forward the purpose of this studyand the research train of thought and the methods. On this basis, define the efficiency ofcommercial banks and introduce the method of efficiency measure.Second, according to the actual situation of Gansu province to select sample banks andaccording to the data availability and to meet the requirements of evaluation methods, thispaper selects loanable funds and total operating expenses as input indicators, interest incomeand non-interest income as output indicators, by using DEA method, from the cost efficiency,technological efficiency and scale efficiency to measure and analyze the efficiency ofcommercial banks in Gansu province.Third, take efficiency value measured by Data Envelopment Analysis method as thedependent variable, choose market concentration, deposit-loan ratio, capital adequacy ratio,the proportion of non-interest income to total revenue, asset quality, equity structure and assetrate as the influence factors of efficiency indicators, through applying the processing limiteddependent variable Tobit model to analyze factors that influence efficiency of commercialbanks in Gansu province.Through research and analysis in this paper, the cost efficiency of Gansu province ruralcredit cooperatives is the best, cost of waste exists in the rest commercial banks. Theallocation efficiency of commercial banks in Gansu province are higher than the costefficiency. From the technological efficiency, Lanzhou Bank and Rural credit cooperatives arein the efficiency frontier, the invalid efficiency of other commercial banks due to invalid puretechnical efficiency. The invalid technical efficiency of ICBC, CCB and Shanghai pudong development bank is caused by the invalid scale efficiency. In addition, the utilization rate ofinputs is low.From the influence factors, market structure, capital adequacy ratio and the innovationability of commercial banks have a significant effect on bank efficiency. In addition, theproperty right structure has an effect on bank efficiency.At last, in view of the above research conclusion, the related countermeasures andsuggestions that the paper put forwards to enhance commercial bank efficiency are as follows:the measures ensure the capital adequacy ratio and guard against financial risks; develop theintermediary business and conduct products, technology innovation; adjust the bank size andimprove management level. Last but not least, attention should be paid to the cost control andthe construction of human resources.