The Empirical Research On Bank Efficiency Of Chinese City Commercial Bank

Bank shareholding reform began in2003, the development of China’s city commercial banks have made remarkable achievements. In recent years, city commercial banks combined provincial-wide restructuring, cross-operating, the introduction of strategic investors, the momentum of rapid development of a series of A-share listing, etc. are profound impact on China’s banking sector, it is bound to become the four nationalized banks and an important force in the national joint-stock banks after China’s economic development has made tremendous contributions. With increasingly fierce competition, China’s city commercial banks can only survive in the state-owned banks, medium-sized joint-stock commercial banks and foreign banks in the attack, and development. In order to develop and grow in the competition, city commercial banks are imperative to improve the overall strength, to achieve sustainable development to meet a series of challenges. City commercial banks may reflect the level of efficiency overall strength of city commercial banks, city commercial banks is to evaluate the performance of the comprehensive index. So the efficiency of urban commercial banks and its influencing factors empirical analysis has a very important practical significance.In this paper, the qualitative and quantitative analysis was combined. On the basis of theoretical analysis, the use of DEA model, Malmquist Index and the Panel data model for influencing factors of urban commercial banks to start a comprehensive study. Broadly speaking, this paper consists of five chapters.The first chapter is the introduction of this paper pointed out the necessity of the efficiency of urban commercial banks, and sort out domestic and foreign bank efficiency study of the relevant literature, noting that research ideas and methods of the present paper, as well as at the Innovation and inadequate.The second chapter is the theoretical basis, has elaborated the concept of efficiency and the efficiency of the bank, the detailed description of the measurement of the model of the bank efficiency, the theoretical basis for the empirical analysis of the later text.The third chapter based on the theoretical of the previous text and selected our48city commercial banks as the research object, the sample from2008to2011,based on the DEA model,respectively, from the perspective of static efficiency (operating efficiency, technical efficiency and scale efficiency) and dynamic efficiency point-Malmquist index model of efficiency of urban commercial banks measure and examine the situation of its intertemporal variation.The empirical results show that the operating efficiency of the urban commercial banks showing an overall upward trend,while the main reason for this change is reason for the pure technical efficiency improvements,that improving of the management level and the sound internal governance mechanisms.But our urban commercial banks did not achieve the desired value.They still need to continue efforts to improve operating efficiency. About half of city commercial banks is in the decreasing returns to scale and it will reduce operating efficiency. So our city commercial banks from the allocation of resources should strengthen risk prevention and control aspects of the development of an appropriate scale, improve asset quality, optimized to enhance the efficiency of banks.When the discussion is divided into three major economic regions, operational efficiency are steadily increasing overall.Business efficiency, technical efficiency and scale efficiency were the highest in the western city commercial banks, which can be seen more modest scale suitable for the development of city commercial banks, and the level of regional economic development and city commercial banks to improve the efficiency is no obvious positive relationship.In the fouth chapter, panel regression model has been used to empirical analyse the factors for our city commercial operating efficiency and to quantitatively study our city commercial banks by the degree of macro and micro factors influencing factors. The results showed savings and loan spreads due to macroeconomic factors did not change during the sample period, so the coefficients are ignored,while GDP growth restrains the improving for the efficiency of our city commercial banks significantly.Asset size, capital gains rate,deposit rate and city commercial banks operating efficiency has a significant positive correlation.They will promote the improvement of our city commercial banks to improve operational efficiency.But the impact of asset size is very small, the rate of return on assets has greater impact.The fifth chapter is a combination of empirical results and targeted policy recommendations for the scientific management of urban commercial banks.