Font Size: a A A

The Evaluating Of Efficiengcy Of City Commercial Bank To Realize The Cross-region Development In China

Posted on:2016-07-06Degree:MasterType:Thesis
Country:ChinaCandidate:C Y WangFull Text:PDF
GTID:2309330461492413Subject:Finance
Abstract/Summary:PDF Full Text Request
The city commercial bank originated from urban credit cooperative, and it’s an important part of China banking as the third echelon. From regulatory authority allowing city commercial bank to cross religion developing in 2006,City commercial bank’s crossing regional restriction is an important way to improve competitiveness. The regulatory authority’s policy and attitude to city commercial bank’ crossing region have experienced the "limit" stage, and the "allow" stage, the "support" stage,the "cautious" stages and so on, and in 2013 city commercial bank’s cross-regional expansion may begin again. The policy change shows that the regulatory authority did not form a clear judgment. We hope that we can give an objective evaluation about the efficiency of city commercial banks to provide references for the correct decision of supervision department.This paper uses data envelopment analysis method, combining with the Malmquist index and super efficiency model, based on 329 observations of 47 representative city commercial banks in China from 2007 to 2013,and divide them by assets into three kinds as the large, medium and small city commercial bank.The result show that:Firstly,the large city commercial bank’s pure technical efficiency is highest,but its technical efficiency is a little relatively low,due to its scale efficiency is relatively low.Therefore,the large city commercial bank should be controlled in a reasonable investment and select the appropriate scale. The medium city bank’s technical efficiency is lowest,due to its pure technical efficiency is lowest.Therefore,the medium city bank should improve the level of technology and management, and reasonably choose the scale of cross-regional expansion.The small city commercial bank’s technical efficiency is highest,due to its scale efficiency and pure technical efficiency are relatively high,and half of them is in increasing returns to scale.Therefore, the small city commercial bank can improve management technology level to achieve economies of moderate scale to obtain economies of scale.Secondly,taking time as object to compare the sample’s mean from 2007 to 2013. The technical efficiency change(effch), pure technical efficiency change(pech) and scale efficiency change(sech) look as “v” trend,and the level from 2010 to 2011 is lowest,and technological change is the main factor restricting the productivity M index’s rosing.Thirdly,in most of years the bank’s efficiency of not crossing religion this year is higher than efficiency of crossing religions.Although at the beginning of crossing region the not interregional bank’s efficiency is higher than the interregional.As times goes on, the interregional bank’s efficiency gradually increased.The reason is that it takes large early inputs such as fixed assets and manpower and outputs grow slow. When the city commercial bank gradually opened the branch organization market, with relatively low marginal investment and increasing market share,its efficiency increased.Based on panel regression model, We analyze effect factors of 43 cross-regional city commercial banks.Reseach shows that cross-regional operation creates negative effect in some way due to the large upfront investment and the low output growth,and city commercial banks’ efficiency decreased significantly when they set up branches in different places,and the efficiency decreased as branch number increased because of blind expansion or management could not keep up the pace of expansion would lead to decreased efficiency,along with the bank opening market,and the efficiency improved. Therefore banks should take cross-regional operation reasonably.The scale of asset has positive effect on efficiency, while the deposit is significantly negative correlation due to some city commercial banks blindly accepted deposit and paid high interest rates, but could not convert them into high quality loans in suitable loan interest rate.They should focus on the built branch and loan quality.Capital adequacy rate and non-performing loans have no significant positive,and in the long run the bank should improve capital adequacy ratio and reduce non-performing loan ratio for safe operation. The rate of net assets-profit considerably increases efficiency,and cost-income ratio has weak negative correlation due to the ratio being slightly higher in the early of crossing religion, banks should improve the profitability of assets and enhance the level of cost management.Liquidity ratio has weak positive correlation,and the bank’s maintaining moderate liquidity is important in the background of money shortage and banking’ s intensified competition.
Keywords/Search Tags:City Commercial Bank, the Cross-region Development, Efficiency, Data Envelopment Analysis
PDF Full Text Request
Related items