Research On Cost Efficiency Of China Commercial Bank And Influence Factors

With the development of society and economy, finance has become the core ofthe world economy. In the structural framework of modern financial institutions, dueto the capital market started late, still undeveloped, slow development of financialinnovation, capital markets financing instruments single, China’s commercial banksbecame the most popular financial market intermediaries, to become themost-resident investors popular investment tool. Through commercial banks, thegovernment can optimize the allocation of national economic production andbusiness activities, improve the efficiency of resource use; commercial bank depositand lending rates can be adjusted to regulate the money supply to achieve thecountry’s macro-control; commercial banks of China’s economic construction fundsneeded to connect all aspects of social reproduction, social and economic activitiesto achieve effective communication of information, visible, commercial banks play apivotal role in China’s economic and social development process. With the furtheropening up of China’s financial market, China’s commercial banks are facingunprecedented challenges and competition, how to seize the opportunity to improvethe efficiency of various commercial banks become an issue of common concern.Existing research on the cost-effectiveness of the bank often help traditionalDEA or SFA method estimates the cost efficiency of banks, due to the limitations ofthe method, a lower estimated accuracy of the results. Based on the analysis by thedistance function defines the basic connotation of banks’ cost efficiency and the useof the latest model of the common border, analysis and estimates of thecost-effectiveness and cost-technical gap ratio of banks. Especially in the course of a specific measure, measure the results in order to increase the accuracy androbustness, we use a Bayesian approach for joint frontier parameter estimates.Finally, select the size of banks, asset quality, the bank resource allocationcapabilities and intermediate business as variables, through the establishment ofPAVR model to analyze the factors affecting the banks’ cost efficiency and dynamiccharacteristics. Results of this study will explore how the financial market reforms,improve the cost efficiency of banks, the cost of the bank’s risk aversion has a veryimportant significance.Firstly, the definition and classification of bank efficiency, which leads to theconcept of cost-efficiency of commercial banks. Secondly, China’s actual situation,select the58commercial banks in1998to2011a total of14years of data, using thecorresponding input and output indicators established empirical analysis of themodel, based on a common stochastic frontier approach, cost efficiency estimates, inobtain cost-effective data sample banks each year, the overall situation is described,and the value for cost-efficiency cost efficiency of state-owned joint-stockcommercial banks and other joint-stock banks comparative analysis. Again, thefactors affecting the cost efficiency of Chinese commercial banks qualitative analysis,in addition to the endogenous factors of Chinese commercial banks influence theselection of cost-effective regression equation for quantitative analysis andevaluation of the impact of various factors on the cost efficiency of commercialbanks brought. Finally, the cost efficiency of commercial banks before paperanalyzes the impact of factors, methods and recommendations made to improve itscost efficiency from all aspects of optimization and regulatory policies to improvethe bank’s own internal control system.But because my ability is limited, and the impact of China’s large commercialbanks’ cost efficiency factors, the impact on banks’ cost efficiency is also very different ways, so the factors that affect the efficiency of Chinese commercial banks’cost needs to be further discussed.