Rural Commercial Bank’s Efficiency Evaluation And Factors Analysis

This paper selected our15rural commercial banks as the research object, usedata envelopment analysis (DEA method) to study its technical efficiency, puretechnical efficiency and scale efficiency.The comparison method includeshorizontal efficiency comparison, longitudinal comparison, this paper alsocompare the efficiency of the eastern, central and western economic region,andthe efficiency difference between big and small rural commercia bank, then find(a) when a sudden increase in the number of institutions comes in2011, theoverall pure technical efficiency and scale efficiency improved and decreasingreturns to scale in a number of institutions declined, but then there is a decreasein overall efficiency in2012, decreasing returns to scale in a number ofinstitutions shows upward trend, which shows low operational efficiency in theprocess of expanding the capital, and thus produces negative impact;(b) ruralcommercial banks currently subject to pure technical efficiency;(c) technicalefficiency in eastern and central region is at a high level, and in a more stablestate, while the western region ’s technical efficiency is generally low, and itstechnical efficiency fluctuations;(d) the technical efficiency of large ruralcommercial banks slightly higher than that of small and medium ruralcommercial banks, in the market competition, small and medium ruralcommercial banks has scale efficiency and is more responsive ro pure technicalefficiency.Then this paper uses Tobit regression to analyze factors that could influenceRural Commercial Bank ’s efficiency,then found technical efficiency issignificantly negatively correlated with market share,significantly positivelycorrelated with the deposit-loan ratio,significantly negatively correlated with thecost of consuming, significantly positively correlated with the return onassets,significantly positively correlated with the ability to innovate. Then putsforward recommendations to improve efficiency: to maintain a reasonablemarket share, enhance resource allocation capability,and enhance bankprofitability, improve financial innovation capability.