An Empirical Study On The Efficiency Of China 's Commercial Banks In

The outbreakof the2008financial crisis has accelerated the pace of reform of theinternational monetary system, and also boosted the RMB internationalization. Chinaofficially launched the internationalization of RMB in2009, and the State Councildecided to formally launch RMB cross-border trade finance in April. People’s Bank ofChina launched its implementing rules related to RMB cross-border trade finance inJuly. Commercial Bank of China handled first RMB cross-border trade financebusiness among all banks which marked Chinese commercial banksparticipated in theprocess of RMB internationalization.This paper introduces the development status ofChinese commercial banks under the background of RMB internationalization,including their overall development status and international competitiveness. We findthat Chinese commercial banks get favorable development andtheir overallinternational competitiveness also improves. Then we analyze the effluence ofcurrency internalization on banks from three currency internationalization’s threetheories. Finally, we use DEA to measure banks’efficiency from2009to2013andestablish a model to analyze. The results show thatthe efficiency of China’scommercial banks has been improved since2009.And the banks which carry morebusiness relevant to RMB internationalization have more obviousefficiency.Also wefind that the proportion of cross-border RMB trade financeis negative to bankefficiency, while the income share of RMB cross-border settlement has a positive rolein promotingbank efficiency.Therefore, we believe that RMB internationalization canhelp to improve efficiency of Chinese commercial banks’ efficiency to some extent.Chinese commercial banks should also seize the opportunityto strengthen internal andexternal construction to improve its international competitiveness fundamentally.