A Comparative Study On Efficiency Of National And Local Commercial Bank In China

In recent years, asset securitization has brought great opportunities and challenges to China’s financial industry. Commercial banks are the core institutions of the financial industry, and its efficient operation in favor of the development of our country and the stability of the financial industry. As a result of different background of development, the efficiency and the impact on national and local commercial banks are also different. Through comparative study of national and local commercial banks efficiency delve into categories of commercial banks efficiency factors, and accordingly this paper provided specific targeted suggestions to help both types of banks.Firstly, this paper discusses the background and significance of the study. Secondly, according to the current development of national and local commercial banks, study the different between them. Again, measured cost efficiency of national and local commercial banks based on DEA. Compared and analysed each of the different types. Then, this paper selected 9 national commercial banks,11 local commercial banks, from 2009 to 2013,to establish the panel data regression model, defined bank cost efficiency as explanatory variables, defined the owner’s equity/ total assets, number of employees, the core capital adequacy ratio, net lending/ deposits and short-term funds, the average return on assets, other operating income/ average assets as the explanatory variables, from the asset structure, the size of banks, bank risk control ability, the ability to configure profit capability, innovation capability respectively discussed its impact on the efficiency of different types of banks. Finally, according to the theory and empirical results, combined with the status quo of China’s national conditions and development of financial markets, respectively, provide suggestions to national and local commercial banks.This paper concludes that:(1) the efficiency of Chinese commercial banks is positive correlation with bank size, profitability; (2) the efficiency of national commercial banks is positive correlation with bank size, profitability; (3) the efficiency of local commercial banks is negatively correlated with the asset structure of shareholders, total assets, is positively correlated with risk control ability and profitability.