The Research Of The Frontier Efficiency Of Commercial Banks

Frontier efficiency of commercial bank is a hot spot area in research toeconomists, and it is also the important indicators of commercial Banks businessperformance.To promote the efficiency of Banks and the cost control is the key toenhance the comprehensive strength and the competitiveness of Banks.At the end of2006, the five years’transition period of accession to WTO is over,the domestic Bankswill face foreign banks’ comprehensive competition；however,compared with the biginternational Banks,the frontier efficiency of commercial Banks is low and locate acompetitive disadvantage.Therefore, it is necessary to measure the frontier efficiencyof commercial Banks and analyse the factors that influence frontier efficiency ofcommercial Banks on the basis,meanwhile,putting forward the opinion to improveefficiency.In this paper, penman uses the DEA model to estimate the14listed commercialBanks’frontier efficiency during2008-2013,Meanwhile,building Malmquistproductivity index to analyse the frontier efficiency in static and dynamicviews.Considering the problem of the DEA model and Malmquist productivityindex,using the Bootstrap sampling method to correct the frontierefficiency,besides,obtaining the confidence interval of Bootstrap efficiency to verifythe significant degree of frontier efficiency.After the comparative analysis of the commercial banks’ efficiency condition,it isnecessary to analyse the factors of affecting the frontier efficiency.In thispaper,penman elect Bootstrap efficiency as explained variable,meanwhile,selecetingasset scale,profitability,innovation and so on as the independent variables,buildingTobit model, searching the factors of affecting the frontier efficiency.From analysis ofthe influential factors of commercial banks’ efficiency,penman can find that Profitability have the greatest effect on the efficiency of commercial Banks,the second isthe assets.Besides,Commercial Banks should complete shareholding reform as soonas possible,Optimize the structure of property rights and the corporate governance.