A Study On City Commercial Bank Efficiency By DEA Model

As today’s economic and social development, the soundness of financial institutions and the operational efficiency of the financial system has become an important indicator of the level of economic development of a country and the level of modern civilization. Seeing Classification of banks continuously enriched, the size of the commercial bank continues to enrich, banking competition has become increasingly fierce.City commercial banks have its specific historical background and long history, in recent years it has become the focus of social and public concern.In the rapid development of city commercial problems exposed is its problem in risk management and unreasonable structure as well as strong product homogeneity, etc. At the same time, city commercial banks from the functional and the inception of the innate conditions are important to determine the extent of its local economic development, it also led to the inevitable obstacles encountered in the development process. From the specificity and importance of urban commercial banks starting in the banking industry has entered a crucial stage of restructuring, the financial industry is facing system constraints and challenges of the new competitors into the background, on the consolidated city commercial banks operating efficiency and impact of research analysis of factors.After reading classic literature on urban commercial bank efficiency studies and recent research results, the paper chose to use higher frequencies, the model calculation results are more mature and DEA methods to support the fact that the article as a major research tool. Taking into account the caliber of integrity and consistency of data are available, choose a city firm financial data10and five joint-stock banks as empirical research samples. Finally, from the level of maturity and development of regional firms to consider the development of the city, choose the Intra Regional City firm as a research object.Through empirical research by DEA model, I concludes that the efficiency of City commercial Banksis generally low, and the problems of risk management is not enough and lack of innovation. According to the conclusion I put forward some practical advices to develop itself. From a macro point of view, relevant departments should derive the construction of credit system and regulation. From a micro point of view, bank itself should improve the innovation ability to create core competitiveness.