Efficiency Research Of Commercial Banks Based On Shared Investment-type Two-stage DEA

With the acceleration of world economic merge and the development of internet finance,Chinese commercial banks are supposed to improve operational efficiencies to face the threats from outside. Commercial bank efficiency optimization is a critical topic to the upcoming commercial bank management. We find that traditional DEA method cannot fully meet the requirements of commercial banks. Traditional DEA method cannot reflect the internal structure of production system, but the operating process of commercial banks can obviously be divided into two parts. We need to find more suitable methods to research on this subject. This paper constructs the framework of shared inputs two-phase DEA method and applies it into the evaluation of the efficiency of commercial banks. The main research work and achievements are:(1) Construct shared inputs two stage production system of commercial banks. The production process divides the operation process of commercial bank business into two parts, the liability and asset business. And the input is shared between the two stages, and free input is added to the second stage, which makes the production system more close to the commercial banks operating status.(2) Propose the shared input two stage DEA model based on the above production system. We propose the mathematical model based on the production system, and get the model to measure and decompose the efficiency of commercial banks. This paper also puts forward the model under two conditions respectively, namely the constant return to scale and variable return to scale. And based on the model we can calculate the technical efficiency, pure technical efficiency and the stage efficiency of commercial banks. Finally, the solution to the model is given.(3) Based on the shared investment type Two stage DEA model, we get the technical efficiency and pure technical efficiency of commercial banks and the corresponding stage efficiency for the 16 listed commercial banks in China during 2009-2013. And then we analyze and explain the efficiency results, include: the comparison among Chinese commercial bank efficiency, the comparison between stage efficiency, and the comparison between banks with different ownership.(4) Analyzed Factors affecting the efficiency of Chinese commercial banks. Qualitative method is applied in the research and the factors include: the size, profitability, degree of innovation, stability, and asset allocation. DEA Tobit fixed effects regression model is applied to the test the impact of various aspects on the efficiency based on the sample data of China 16 listed commercial banks during 2009-2013.