Data Envelopment Analysis And Evaluation On Operation Efficiency Of Chinese E-banks

On June,1996, the first internet financial service was initiated by Bank of China, which became the first Chinese commercial bank with its own website, since then lifting up the curtain of Chinese E-bank development.During the past two decades, Chinese E-banks experienced four phases from establishment, early stage, expansion and maturity, the exploration of E-bank has involved every aspect of people’s daily life by its efficient and convenient financial services. As the information era comes, the unprecedented increase of Chinese internet users and universal usage of internet in all walks of life enabled E-bank, which widely spread globally, to begin a new chapter of Chinese bank industry development.However, the relatively delayed start, short development period, and yet unsatisfied administration system and strategy constrained its management efficiency, leaving much room for improvement. To face the challenge of low productivity of Chinese E-bank,the study on its management efficiency is essential for the healthy bank industry development and supportive financial services in internet environment for Chinese economy development. Efficient E-bank will optimize the rational allocation of financial resources, improve service ability of banks, enlarge profit and strengthen bank’s international competence.This paper selected14major domestic commercial banks as the study subjects, triying to analyze and evaluate the input and output ratio of its E-bank management, based on the banks statistics by the end of2O12.Firstly,the influential factors are analyzed under perspective of varieties reduction, in order to select the input and output factors with practical meanings. Secondly the study evaluates the overall and separate management efficiencies of the covered banks by tool of DEA analysis.The result shows that current Chinese E-bank input and output ratio does not reach the optimum; therefore, qualitative analysis is applied to find the possible causes and potential obstructions. Based on qualitative analysis, this paper continues to explore the influential factors from both macro and micro aspects, trying to raise confronting strategies for E-bank efficiency improvement. In the last chapter, the experience of developed countries is introduced and learned to propose three policy suggestions for Chinese E-bank in system building of relative law, regulation and supervision, safety net system and risk management, service and business innovation.