Research On Efficiency Of China’s Listed Commercial Banks Based On Three-stage Additive Network DEA Model

The efficiency is the core of the operation and management of the commercialbanks, and it is also the centralized embodiment of the commercial banks’ competition.Under the background of the opening up of China’s financial market and the stockreform and listing of China’s banking, the researches on China’s commercial banks’efficiency can not only provide the theoretical basis for the banks to identify theirown management defects, improve their own management efficiency, but also providethe theoretical reference for the relevant management authorities to make financialregulatory policies.In this paper, we make listed commercial banks as the research object, andevaluate the performance of them mainly from the following four aspects: Firstly,this paper introduces the research background and significance, presents the relatedliterature at home and abroad, and defines the research problem, puts forward theresearch contents and methods. Secondly, reviewed relevant theoretical basis,according to the management characteristics of China’s listed commercial banks andon the basis of the analysis of China’s listed commercial banks’ internal businessstructure, the paper divides the bank’s overall business process into three interrelatedsub-processes: the capital organization, capital allocation and capital profit, thenestablishing efficiency evaluation model by the three-stage additive network DEA,and calculating and analzing the technical efficiency, pure technical efficiency andscale efficiency of the14listed commercial banks’ general and the three operationalphases by this model during2007to2011. Thirdly, analzing the dynamic changes ofthe total factor productivity and its decompositions of the general and the stages ofeach listed commercial bank from2007to2011by Malmquist index, revealing theircompetitive advantages. Finally, according to the empirical results, this paper putsforward some policy recommendations from five aspects to improve the managementefficiency of China’s listed commercial banks: Changing the bank’s managementconcept; Further deepening the reform of the banking industry; Optimizing bank’sasset scale; Speeding the bank’s financial innovation and technological progress;Perfecting the bank’s risk prevention mechanism.The results shown that each listed commercial bank is not reached technicalefficient, the city commercial banks’ average technical efficiency is the highest, the joint stock commercial banks’ average technical efficiency take second place, thestate-owned commercial banks’ average technical efficiency is the lowest, and thetechnical inefficient of the state-owned commercial banks and the city commercialbanks are both mainly due to the scale inefficient, the technical inefficient of thejoint-stock commercial banks is due to the pure technical inefficient; The capitalorganization efficiency generally gets the lower efficiency scores, and the capitalallocation efficiency generally gets higher efficiency scores, this shows that on thewhole China’s listed commercial banks have stronger ability to allocate and utilize theOperating capital, but the ability to get cheap cash flow is relatively weak; Theoverall average total factor production efficiency of China’ listed commercialbanks is rising, and the improvement of the all the elements to enhance the efficiencyof the total factor production efficiency is due to two aspects: the increase of thetechnical efficiency and the technical progress.