The Study Of Modest Scale For Commercial Banks Of China Based On Dea Method

In recent years, the scale of China’s commercial banks continued to expand, but the operating efficiency of banks had not been a corresponding growth. Thus, in the perspective of sustainable development of the commercial banks, research modest scale of China’s commercial banks had important significance. Of course, academia had done some research about moderate scale of banks, but the time these studied were earlier, recent study is rare. In this study, the selected sample data range from2008to2012, and therefore this range determined modest scale for the future development of China’s banks are more instructive.In this paper, modest scale of commercial banks is study object. Firstly, theoretically demonstrated the scale of the bank is not the bigger the better, in order to ensure the efficient operation the bank must maintain a modest scale. Then to select the relevant indicators for20listed commercial banks, use DEA method to measure the technical efficiency, the pure technical efficiency and scale efficiency of Chinese commercial banks from2008to2012, and based on the empirical results, the efficiency situation of the banking was analyzed, further compared the efficiency for the bank of different property rights system and different asset quality. Finally, to measure the efficiency of banks to find the scale interval for the efficiency inflection point. The most efficient banks are in this scale interval. The modest scale bank is determined.The results show that:Firstly, from2008to2012China’s20listed commercial banks showed overall technical inefficiency, pure technical efficiency has been relatively stable, technical invalid mainly caused by scale invalid. Technical efficiency and scale efficiency is showing a decrease trend after the first rise. Secondly, each efficiency value of state-owned banks is lower than the joint-stock banks and listed city commercial banks. State-owned banks have shown a majority of the state of decreasing returns to scale, while the joint-stock banks and listed city commercial banks have shown a majority of increasing returns to scale and constant state. Superior asset quality of banks’ efficiency is higher than the banks for inferior asset quality. Thirdly, asset scale and efficiency of the banking show negative correlation totality, but not significantly. After to remove the banks of constant returns to scale, increasing returns to scale banks showed a significant positive correlation relationships between asset scale and scale efficiency, while decreasing returns to scale banks showed a significant negative correlation relationships between asset scale and scale efficiency. Finally, the modest scale of China’s commercial banks is range from1000to5000billion yuan.