The Research On The Efficiency Of China’s Commercial Banks

Commercial bank is the most important part of modern financial system, and its efficiency not only has a great impact on the operation and stability of the financial system, but also the healthy and sustainable development of modern economy. Therefore, the research on the efficiency of commercial banks is of great significance. In this paper, the two stage network DEA method, combined with the factor of loan quality, is used to measure the efficiency of the overall, capital organization and capital operation progress of China’s 15 commercial banks in 2006 to 2014. And the influencing factors of China’s commercial banks’ efficiency were also explored. The study found that the efficiency of China’s commercial banks has declined during the international financial crisis, but the overall trend is rising. Before the financial crisis, the efficiency of state-owned commercial banks is lower than joint-stock commercial banks, but suffered from the impact of the financial crisis, with the market scale advantage and the release of the dividends of reform, state-owned commercial banks gradually catch up and surpass the joint-stock commercial banks. The market sizes, loan to deposit ratio and loan quality are the main factors that influence the efficiency of the banks. This paper suggests speeding up the mixed ownership reform of commercial banks, and actively implementing the “going out” strategy and enhancing the risk control ability to improve the efficiency of China’s commercial banks.