The Study On The Efficiency Evaluation Of Commercial Banks Of China And Its Influencing Factors Based On Three-stage DEA Model

The financial industry is the core of modern economy industries, and it alsopromotes the development of the national economy, and protects economicglobalization. As the pillar of the financial industry, commercial banks’ level ofdevelopment and size determine the prosperity and decline of the entire financialindustry. With the deepening of the reform of China’s banking industry and the fullaccess of foreign banks, China banking is facing tremendous opportunities andchallenges. Then the profit model relying solely on the deposit and lending spreads isnot sustainable. So it is the key to improve the efficiency of commercial banks, reducebank risk, and improve the bank’s core competitiveness. The bank efficiency reflectsthe allocation of resources of the commercial banks, and it is the results of acomprehensive evaluation of all input and output items. Moreover the bank efficiencyboth reflects the performance of the financial statements also includes the operatingresults of the financial analysis. Therefore, bank efficiency indicators can measure thebank’s core competitiveness and sustainable development capacity in the future;banking efficiency analysis method itself is an effective measure of bank performance.In the context of the current market-oriented interest rate reform intensifies, thenon-performing loans of commercial banks continued to rebound, and fiercecompetition in the banking sector, the paper researches the efficiency of China’scommercial banks efficiency in-depth trying to conduct some exploratory work in thetheory and practice, and provides some comments and suggestion to promoteefficiency and enhance the competitiveness of China’s commercial banks.This paper introduces the meaning, classification and analysis principles of thecommercial banks efficiency, as well as the measure model of cutting-edge efficiency. According to the existing research experience and the operating characteristics of thecommercial banks, the paper selects the number of employees, net fixed assets,operating expenses and interest expense as the commercial input variables, and netprofit as output variables, considering non-performing loans undesired production toassess the efficiency of commercial banks in China2004-2011. To eliminate externalenvironmental factors: the structure of property rights, the establishment of life andthe number of branches, the efficiency of state-owned commercial banks improvessignificantly, but the change in the efficiency of joint-stock commercial banks is little.Based on the evaluation of the efficiency of commercial banks, commercial banksefficiency value is interpreted variable, the paper selects the appropriate indicatorsreflecting the profitability of commercial banks, the ability to configure, innovationand human resources as an explanatory variable, uses panel Tobit regression toanalyze factors affecting bank efficiency. The analysis results show that: theprofitability of China’s commercial banks have a significant positive impact;configuration capability have a significant positive impact on the efficiency ofjoint-stock commercial banks, but the overall positive impact is not significant;innovation capability of the efficiency of commercial banks is not clear; complexhuman resources personnel constitute a structure on the efficiency of commercialbanks have a significant positive impact on the state-owned banks, joint-stockcommercial banks have a significant negative impact. On the basis of the above study,this paper argues that the commercial banks commercial banks need to deepen thereform of property rights, improve the modern enterprise management system degrees;improve asset quality, reduce non-performing loan ratio, and control operational risks;vigorously develop intermediary business, improve banks ability to innovate, improveasset profitability structure; to strengthen internal human resources management, andimprove the quality of human resources.