The Study On The Frontier Efficiency Of China Commercial Banks-2007-2011

In this paper, we estimate the frontier efficiency of15commercial banks in the period of2007-2011by the method of data envelopment analysis (DEA), and build Malmquistproductivity index and its decomposition index to study any two periods of productivitychange of commercial banks. Through the above methods, we can assess the performance ofcommercial banks’ reform. In order to overcome the problem of biased estimates ofnon-parametric methods and statistical tests can not be carried, we introduce the method ofBootstrap simulation statistical. We simulate2000Bootstrap samples and calculated theBootstrap deviation correction value as well as the confidence interval. Under the informationthat got from Bootstrap sample, we can test the frontier efficiency and Malmquist productivityindex. Correction results from the test, the value of the DEA frontier efficiency estimates areskewed to the right, and the frontier efficiency was able to restore to the confidence intervalwith the bias correction. While most of the Malmquist productivity index value can throughsignificant checks to ensure the authenticity and accuracy of the subsequent data analysis.After test and correct the frontier efficiency and Malmquist productivity idex, we studythe frontier efficiency and productivity level of the commercial banks. Get the followingconclusions:(1) In2007-2011, the frontier efficiency of commercial banks was on the upward trend.Due to the impact of the financial crisis in2008, led to the frontier efficiency levels of2009declined. And the frontier efficiency gradually rose in the subsequent two years.(2) In2007-2011, the frontier efficiency of state-owned commercial banks got the biggestchanges, which changed from the inefficient state to the high efficient leve. The averagefrontier efficiency value of joint-stock commercial banks and city commercial banks wereclosed, that the joint-stock commercial bank’frontier efficiency levels were slightly ahead.(3)In2007-2011, the average productivity of the commercial banks grew year by year,with the growth rate of37%. The main driving force of the growth of productivity came fromthe technological advances of the commercial banks, with the technology growth rate of28.12%. And the technique efficiency levels increased by only6.54%, that was the relativelylow contribution to the growth of the productivity. (4) In2007-2011, the highest level of productivity growth in the state-owned commercialbanks, reached60.07%. The productivity of joint-stock commercial banks got the groth rateof35.77%. And the productivity of city commercial banks got the smallest increase of only9.56%, and productivity levels of different periods were relatively unstable. City commercialbanks were still at the exploratory process of adjustment, but the overall level of productivityof city commercial banks were upward.