Operating Efficiency Of China’s Commercial Banks

Since the beginning of the21st century, China’s commercial banks face the domesticcompetition and the threat of entry of foreign commercial banking. It becomes a key issue ofsurvive and development for commercial banks that how to improve their operationalefficiency and occupy an advantage in the market.In this paper, we choose five state-owned commercial banks and11commercial banks,16joint-stock commercial banks of data. Select the time series between the years of its2007-2011business data. Using DEA method calculates the annual technical efficiency, puretechnical efficiency, scale efficiency value, to analyze the efficiency of its operation status.The analysis show that five years:2007-2011, the overall average operating efficiency ofcommercial banks in China was0.914, indicating the presence of8.6of the input waste ofresources. The low efficiency of commercial banks is largely due to scale inefficiency ratherthan pure technical inefficiency. The efficiency of state-owned banks is generally lower thanthe efficiency of the joint-stock banks.