The Research On Cross-regional Operational Efficiency Of City Commercial Banks In China

In recent years, City Commercial Banks have become an indispensable part of China’s financial system, and have played an important role in our financial field. In order to seek a higher level of development, City Commercial Banks must operate across the region. Using data envelopment analysis and time series model, this paper analyed the efficiency of operation and the external environment of city commercial banks in China in this perspective of the cross-regional operation efficiency. Then it made a detailed analysis on the influence factors of city commercial banks efficiency operating across the region.First, this paper presented the background and significance, summarized the domestic and foreign about the regional business operation of city commercial banks in the academic literature, related theories on the city commercial bank efficiency what were briefly introduced and discussed. In addition, a comprehensive analysis of the development process and the current management concepts, the regional business operation of City Commercial Bank in china.Second, this paper used the data envelopment analysis (DEA) to measure the pure technical efficiency and scale efficiency of12City Commercial Banks. The results showed that China’s city commercial banks operating across the region efficiency showed a rising trend, the pure technical efficiency basically closed to completely effective, scale efficiency generally increased. The most massive of trans-regional operating of city commercial banks has reached DEA effective state. City Commercial Banks belongs to the DEA invalid.Third, the external environment of the cross-regional operating efficiency of City Commercial Banks was studied by time series model, proceeding from the local government intervention, other commercial banks competitiveness, and the local economy level. Regional business efficiency of the Banks of Beijing, Nanjing, Tianjin, Hangzhou, Harbin, Chengdu and local governments influenced each other. The trans-regional operating efficiency of Ningbo bank and Guangzhou bank were influenced by local government in one direction. The cross-regional business efficiency of Shanghai Bank and Huishang Bank had got rid of the influence of the local government. In addition to Shanghai Bank, the other City Commercial Banks operating efficiency by the state-owned commercial banks and joint-stock commercial banks’competitiveness.Finally, this paper put forward some countermeasures and suggestions for promoting our city commercial banks operating across the region efficiency. Improving the internal governance, City Commercial Banks should also provide cross-regional steady development in the external environment. City Commercial Banks must adhere to the market orientation, appropriate planning management areas, regional differences in operation, cultivate high-quality talents. At the same time, the government also need to support relevant policies for the development of City Commercial Bank, and do not excessive intervention of City Commercial Bank cross-regional development.