Research On Efficiency Of China Listed Commercial Banks Based On Data Envelopment Analysis

With the financial globalization and development of financial innovation,competitions that commercial banks face are both from foreign and domestic competitors.At the same time, in July20th,2013, financial institutions are free to decide loan interestrate. According to this background, commercial banks have to adjust their strategies tocompete with others.The methods used in this paper are quantitative analysis and qualitative analysis.At the same time, comparative analysis is also used. Firstly, this paper reviews thedomestic and foreign researches on efficiency of commercial banks. Secondly, itintroduces briefly the methods to measure the efficiency of commercial banks and it alsocompares these methods. Thirdly, it analyzes the factors aspect the efficiency of listedcommercial banks. Fourthly, it uses the Data Envelopment Analysis (DEA) method toanalyze the efficiency of16listed commercial banks and these data is from2010to2012.The results show that state-owned commercial banks are in a situation of diseconomiesof scale; and the joint-stock commercial banks operate differently, and the CITIC Bank,Mingsheng Bank and China Everbright Bank operate better than others, and MinshengBank, Huaxia Bank and Ping An Bank are in the situation of increasing returns toeconomies of scale; listed city commercial banks develop well, Beijing Bank and theBank of Ningbo have the technical efficiency, pure technical efficiency and scaleefficiency, and constant returns to scale, and the Bank of Nanjing is in the stage ofincreasing returns to scale. Finally, it put forward some measures to improve theefficiency of listed commercial banks: using the economies of scale; paying moreattention to financial innovation, and improving the quality of staff; paying moreattention to intermediate business; strengthening reasonable supervision on listedcommercial banks.