The Research Of Banking Efficiency In Gansu Province Based On DEA

As the financing intermediaries, commercial banks shoulder an importantmission to pave the way for the economy and society development, Gansu is aprovince with relatively backward economic developing condition, without thesupport of commercial banks and other financial institutions, the economy will notdevelop smoothly and healthily. The commercial bank industry in Gansu Province canbetter play their role in the economy and society development with the promotion offinancial services and the improvement of operational efficiency. Thus, to find outideas to improving the financial services level and operating efficiency of banking inGansu Province, this paper selects dates from2010to2012, applies non-parametricDEA method to measure and analyze the efficiency of the eleven banks in GansuProvince, also it uses the Tobit model managing the limited dependent variable tomake some research about the efficiency influencing factors.This paper will take the empirical study on the efficiency of the sample banks inthe following sections. First, make an essential summary and assessment of the relateddomestic and foreign literature on the banks studying, then, state the theory of theefficiency of commercial banks based on the summary and assessment, and classifyand illustrate methods studying the efficiency of commercial banks. Second,determine the basic idea of banking efficiency measurement with the input and outputanalysis based on related theory, and taking the number of employment,operatingexpenses and interest expenses as input index and interest income and total profit asthe output indicators, apply non-parametric data envelopment analysis (DEA) to dothe empirical analysis of efficiency on the banks in Gansu Province from the point oftechnical efficiency, pure technical efficiency and scale efficiency. Third, choosedeposit-loan ratio, assets-return ratio, the proportion of intermediary business,cost-income ratio and rate of non-performing loan as empirical analysis indicators ofefficiency influencing factors, take efficiency value measured by Non-parametricDEA method as the dependent variable, and apply the processing limit Tobit model,this paper does empirical analysis of factors affecting the efficiency of sample bankbased on the research of technical efficiency, pure technical efficiency and scaleefficiency. The results showed that the higher of deposit-loan ratio in favor of bank efficiency, changing the level of assets-return ratio, the proportion of intermediarybusiness, cost-income ratio and rate of non-performing loan can not significantlyimprove bank efficiency. At last, this paper draws the research conclusions and putforwards the related countermeasures and suggestions based on the above empiricalanalysis.This paper put forwards the relevant countermeasures and suggestions from thefollowing sides to improve efficiency and competitiveness of sample banks throughthe empirical study of efficiency of banking in Gansu Province. First, enhance productand business innovation, establish a diversified revenue model; Second, build acomprehensive risk management, improve risk management; Third, further promotereform and improve operational efficiency; then, adjust scale reasonably and focus onoperational efficiency; finally, the implementation of human resources strategy toimprove the quality of human resources, strengthening of human resourcesmanagement.