An Empirical Study On The Efficiency And Risk Regulation Of X In China 's Commercial Banks

Chinese commercial banks conducted a joint-stock reform and market-oriented operation since 2003. The decision-makers and management of these chinese commercial banks have to face such a big problem:After joined the WTO, China became an important role of global economy, It is necessary to face the sustained impact of the financial crisis and the general downward pressure of the global economy, but to deal with the great shock of the entering of a large number of foreign banks. How to improve the management and operating capabilities, how to enhance the effectiveness of the banks themselves, and how to make their own improve is an important aspect of the studies of commercial banks.Meanwhile, with Basel III released, the stricter supervision of capital of capital structure, asset quality, capital adequacy ratio and liquidity indicators is quite important. It is not only a good chance for chinese commercial banks to study the foreign banks advanced concepts, operating experience, models and technologies, but it also makes chinese commercial banks afford greater challenges.Therefore, this paper focuses on the development of the efficiency of commercial banks, especially through the X-efficiency view of the analyzing banks’ inputs and outputs, using Stochastic Frontier Approach (SFA) cost function models to conduct empirical tests of the efficiency improvements of some domestic commercial banks. At the same time, according to the different operating ways of different commercial banks, the selected input and output variables of analyzing the domestic commercial banks in this paper are also able to describe the characteristics and differences among different banks, which can reflect different business bank characteristics.Through the calculating of the X-efficiency of commercial banks,, the paper is also trying to regression analysis the relationships among X-efficiency of commercial banks and the supervision requirements of Basel Ⅲ,such as capital structure, asset quality, capital adequacy, liquidity indicators, to research the links among the commercial bank’s X-efficiency and these indicators, and point out that the management of commercial banks by strengthening the cost management and the risk management, rather than the blinding pursuit of high profits, can also improve bank efficiency, hence the bank’s long-term competitiveness.This paper might give a better data support for management and decision-makers of chinese commercial banks...