Efficiency Evaluation Of Village Banks In Heilongjiang Province Based On Super Efficiency DEA Model

Our rural finance has been a relatively weak link in the financial system of our country,the rural financial inefficiency has weakened the effect of fiscal support for agriculture. In some extent,village banks supply and perfect the rural financial market,improve the economic development. The first village Banks in Heilongjiang province was established in2008.After nearly six years’s development,The development of village Banks in Heilongjiang province momentum,but as new comer,it also faces many problems.For this reason,Whether village banks can make use of their advantages to the farmers has become the focus to public’s concern.Therefore,this paper analyze Heilongjiang province’s village Banks operating efficiency with the empirical analysis.Successively compared the relations between village banks and commercial banks, rural credit cooperatives, small loan companies.First of all, in the reviews the current research situation at home and abroad, on the basis of the rural financial development based on the theory of agricultural subsidies theory, the rural financial market theory and imperfect competition theory defines the meanings of village Banks as well as the necessity of their existence.Secondly, analyze the effect factors of village banks in Heilongjiang province.The results of the research are the number of village banks in rapid growth year by year.But compared with the conventional rural financial institutions,village banks’s network coverage are small,equity structure are not reasonable,low level of profitability and big operation risk.The development of village banks also face a challenge from external environment.Such as,the limitations of macro economic policy,low social recognition, etc.Those can affect the efficiency of village banks in Heilongjiang province.Again,using the method of DEA as well as the method of super efficiency DEA evaluate the operational efficiency of village banks in Heilongjiang province. To get the results of the research are:, from the overall perspective,nearly43%of the village banks to achieve efficiency effectively, but57%of the village banks can not reach the efficiency effectively; to adjust the not effective village banks’s input and output:one hand fix main business cost and main business income,while reduce the deposit scale,number of staff and workers,net profit and capital;the other hand fix main business cost,deposit scale and net profit,while reduce number of staff and workers and capital as well as increase business income.Finally,from the three levels of macro, medium, and micro propose the profitability of strengthen village banks and propose the countermeasures and suggestions for improving the operational efficiency of village banks in Heilongjiang province. On the macro level,macroeconomic policy will increase support for village banks,improve the social recognition and improve the rural social credit environment. On the medium level,stepping up efforts in supervising the regulators and perfect the construction of market infrastructure.On the micro level,village banks have to improve the ownership structure,improve profitability and improve the personnel quality of the village banks,etc.