A Study On Management Efficiency Of Chinese Commercial Banks Based On The DEA Model

Nowadays, with the fast development of financial revolution in China, the supervision of capital is gradually stricter. The profit increase speed of bank is generally decreased. During the13th Five Year Plan of China, the interest rate marketization speeds up and Chinese commercial banks are in a great need to explore a feasible strategy which can improve management efficiency and meet challenges of the interest rate marketization. America is one of the countries which own a perfect institution of interest rate marketization in the world. Therefore, it is of great guiding significance for Chinese commercial banks to find problems in management and improve management efficiency through referring to America’s management efficiency level and learning reformatory experience from American commercial banks.In the management efficiency theory, combining the pure technical efficiency and allocated efficiency can gain the X efficiency. Abundant empirical researches have demonstrated that the X efficiency which reflects the management ability has a bigger influence for banks when comparing to the scale efficiency and scope efficiency. Therefore, this thesis will regard X efficiency as the research emphasis of bank management efficiency. This thesis will have a date envelopment analysis of management efficiency on16commercial banks in the market of America and China respectively by selecting variable returns to scale radial direction and the DEA model through comparing the calculating methods of efficiency in various banks. Based on the improved BSS bank management quality mode, this thesis constructs a DEA model assessment model of management efficiency in commercial banks.The result gaining through a quantitative analysis of DEA model reveals the situation of management efficiency in Chinese commercial banks:the average allocated value is0.856; the pure technical efficiency value is0.996; the average management efficiency value is0.854. The result of projection analysis states that the management efficiency problems of Chinese commercial banks can be mainly attributed to the over expense on staff compensation benefit, redundancy of staff numbers, the excessive input of fixed estate, the over expense of gross interest, huge branch institutions and over non-interest expense, ext. Aiming at the non-efficient management problems of Chinese commercial banks, this thesis launches an analysis on both micro and macro reasons.(1) The main reason of the over expense of gross interest is the single management mode and weak intermediary business.(2) The over non-interest expense is caused by the increased branch network, inadequate expense control management and the increased non-performing loans.(3) The over proof of fixed assets net values is caused by the updated operational equipment in banks but less improvement on operation flow which affects the management efficiency.(4) The redundancy of staff numbers is caused by the non-scientific customer management system, the discordant proportion of staff majors and the imperfect training mechanism.(5) The over branches reflect the lack of self-service in bank and electronic development canal.(6) The over expense on staff compensation benefit is influenced by the redundancy of staff numbers and the imperfect incentive system such as salary.(7) The qualitative research of macro influence factors of bank management states:the management efficiency of Chinese banking industry is also influenced by the interest rate marketization, the internet finance, the liquidity risk of internet financial industry and bad loans.Based on the similarity of market historical situations and inspired by the revolutionary experience and lessons of interest rate marketization in American commercial banks, Chinese commercial banks can solve and avoid the non-efficient management problems through product innovation, operational transformation and coordination of the improvement of bank supervising system.(1) Based on the changes in demand of public business field, retail business field, urbanization and issues of agriculture, farmer and rural area, develop new products, services by means of mobile Internet technology.(2) The successful transformation of commercial banks, subject to prior accurate positioning, strengthening the constraint, strengthening the implementation, and dynamic Evaluation afterwards.(3) Perfection of banking regulatory system: Emphasis on regulatory of capital and innovative products, establish an independent banking regulator, build multi-linkage in the mixed trend, strengthen information disclosure and risk warning about financial derivatives, accelerate information and network construction in regulatory system.