The Empirical Study On The Efficiency Of Chinese Commercial Banks

For both studies the efficiency of the core issues of economics, but also thereform of China’s commercial banks today are focused on the topic. Whilecommercial banks as one of the economic system of a country ’s most importantfinancial institutions, both in the stock market or in the whole economic systemoccupies a pivotal position. The efficiency of commercial banks is in the business ofcommercial banks, the contrast between its input and output or between the costs andbenefits. For the study of the meaning of the efficiency of commercial banks have twomain aspects:Firstly, as a pillar of the financial industry, the efficiency of commercial banksreflects management and resource utilization commercial banking. And stabledevelopment of commercial banks and of great significance to the development ofChina ’s financial industry. For commercial banks themselves, its efficiency is highor low is not only directly related to the bank ’s own development, but also theperformance of commercial banks to direct their own competitiveness, but also thecommercial banks themselves to achieve optimal allocation of resources andprevention of core financial risks. Therefore, the efficiency of commercial banks hasimportant implications for the development and stability of the banking sector toimprove the bank’s own core competitiveness, promote economic growth and reduceoperational risks.Secondly, as the national economy "barometer" of commercial banks andeconomic development of a country closely related. State financial regulatoryagencies through commercial bank efficiency analysis, we can learn about the degreeof utilization of resources of commercial banks, and for this to work out the relevantfinancial regulations, which is conducive to the efficient allocation and use ofresources in the internal banking business.In the literature on the efficiency of Chinese commercial bank efficiency study,at the start of the main use of the efficiency frontier analysis, analysis of thecommercial banking market structure, ownership and content. In selecting methods and models also use more of the non-parametric data envelopment analysis andstochastic frontier analysis parameters of the two methods. Data envelopment analysisfocused primarily on technical efficiency and scale efficiency into elements of aspectsaimed at improving the technical aspects of the production system to the optimal state;stochastic frontier analysis focused primarily on efficiency and cost-effectiveness ofinvestment profits elements, its purpose in the economic aspects of the productionsystem to the optimal sound.According to the study of the existing literature, we find that there are someplaces yet to be perfected and optimized, are: first, the commercial banks generallyqualitative properties of its nature and function, mostly confined to commercial banksat the corporate level, This is likely to cause not completely reflect the unique natureof the bank on the selected indicators. Second, the researchers when defining thedifferences are more efficient concepts and categories, and even some studies did notclear the meaning of efficiency. Third, some of the literature in the use of dataenvelopment analysis method research efficiency, easy to relative efficiency valueoriginally measured blindly up with the intertemporal comparison.For these reasons, carefully read and analyzed the domestic and internationalresearch literature on bank efficiency, taking into account the availability of arepresentative sample of banks and comparability of data and other factors, the paperselected commercial banks as of13research sample, respectively, using DEA andMalmquist Index method for China’s commercial banks were compared, analyzed thechanges in the technical efficiency of Chinese commercial banks, pure technicalefficiency and scale efficiency since2004-2010trends and disparity.The results show that: the main factors causing decline of state-ownedcommercial banks technical efficiency of state-owned banks has an invalid scaleefficiency; Meanwhile, China’s state-owned commercial banks, there are still returnsto scale downward trend, while in the joint-stock commercial banks into the samethere are constant returns to scale, or increasing returns to scale phenomenon.Specifically, the main problem restricting the development of China’s commercialbanks are mostly business income difference than a single deposit and loan interest,the smaller the proportion of intermediary business and balance sheet business, andtechnology innovation capability is weak, is not conducive to promote efficiency;state-owned commercial banks is subject to institutions and mechanisms due to thelack of advanced management concepts and the introduction of high-level personnel and training. Meanwhile, the paper also puts forward some suggestions: mainly ontechnical issues for the development and utilization of advanced informationtechnology, while focusing on the introduction and cultivation of high-level personnel;efforts to strengthen the innovative business products, while gradually increase inallocation efforts to prevent and control financial risks; in terms of the scale of theproblem, the commercial banks the flexibility to develop according to its owncharacteristics of the strategic goals for their own development, timely planning scale,while the internal management structure and personnel to improve and optimizeapplications.