Chinese Commercial Bank Operation Efficiency’s Comparative Analysis And Influencing Factors Research

As the recently futher financial market reform pushes and bank continues to lower the entry barriers, Chinese commercial bank faces unprecedented competition and big challenge. How to improve the operation efficiency of bank in order to actively and calmly cope with the challenges is a major issue needed to solve of Chinese banking industry. In this paper, we refer to both domestic and abroad documentations to do theoretical research, search bank Annual Reports and choose 18 banks’ relevant datas since 2006 to 2013 to build models in order to analyze the situation and do empirical comparative study. In this way, we can put forward countermeasures and suggestions of enhanceing the commercial banks operation efficiency to the relevant regulatory authorities, government departments and commercial bank managers. What’s more, we make a contribution to improvement of Chinese banking industry efficiency and competitiveness and even sustainable development of Chinese financial industry.The first chapter discusses the research background, significance and methods. What’s more, In the first chapter, documentations are classified according to bank efficiency measurement methods and influencing factors. Then through make a summary and research, we find there are many efficient measurements. The commonly used method is data envelopment model, meaning DEA model. The research on influencing factors are mainly concentrated in the ownership structure, market structure, risk control and regulation. The second chapter briefly analyzes the current situation of Chinese commercial bank’s market structure and ownership structure, found both oligopoly and highly concentrated ownership exist in our state-owned banks. In the third chapter, we first use intermediary method to select the input and output variables and analyze the situation, and find in recently eight years, the inputs and outputs of banks shows a rising trend. Then ultra- efficiency DEA Model and Malmquist Index models are established to carry out the static and dynamic bank efficiency analysis. Although the state-owned banks are more close to the optimal production boundary than small and medium commercial banks, efficiency improvement speed of the latter is faster than the former. In the fourth chapter, article use ultra-efficiency DEA model based on intermediary method as the dependent variable. And we select total of twenty-six independent variables in the four categories to establish Tobit model and make an analysis, then find market share, ownership concentrationm, the innovation reform impact on the banks efficiency and the scale of bank outlets are more significant, however, market monopoly, property rights and other variable are not obvious. In the third and fourth chapter, accrounding to empirical analysis based on intermediary method, articles use assets method and Value-added method to test the robustness of the above conclusions, we find it remains the same conclusion. In the fifth chapter, according to the analysis results, From the view of bank size, intermediary business development, property rights and foreign strategic investors introduction, cost reduction and personnel training, the article proposed countermeasures to improve the efficiency. In the last chapter, contents and conclusions is generally elaborated and future research directions are proposed.The crowning touch of this paper is mainly manifested in two aspects: first, do dynamic and static analysis of operation efficiency so that we can get a more comprehensive analysis of the results; second, input-output method is no longer confined to a particular one, but mainly based on intermediary method and assisted by the others to make a comprehensive analysis to ensure the robustness of the conclusions.