Research On The Influence Of Ownership Structure On The Efficiency Of Commercial Banks

Since the first commercial bank of Agricultural Bank of China was established in 1979, the development of commercial banks in China has gone through nearly half a century. It is only a short time for the history of the global financial development, but it is surging forward with great momentum for China’s banking industry with the half century, a multi-level commercial bank system has basically taken shape in our country during this period, the four state-owned commercial banks and national joint-stock commercial banks has been into the forefront of the world. But the achievement of development can not cover up the problems existed in China’s banking industry, in order to improve the efficiency of the four state-owned commercial banks and promote their accelerated pace of IPO, the government had paid for the four state-owned commercial banks’ bad assets. Through the change of ownership structure, the efficiency of commercial banks in China has made remarkable progress. But the China’s banking industry shown a deficiency again when facing the needs of development, we can see it from the improvement of banks’ non-performing loan ratio and turnover rate in 2015.The factors that affect the operating conditions of commercial banks can be divided into two parts, external factors and internal factors, the external factors are the macroeconomic environment, the internal factors are the governance mechanism of banks. The macroeconomic environment is an exogenous variable, banks have no choice but to accept it, so optimizing the governance mechanism has become the key to improve the efficiency of commercial banks. And the ownership structure is the most important factor to decide the governance mechanism of commercial banks, the different of ownership property and ownership concentration will makes the commercial banks have different business purpose. Therefore, the difference of ownership structure will makes commercial banks shown different efficiency. Based on this, This paper will be comprehensive analyses the efficiency level of China’s 15 listed banks based on the banks’ financial data and ownership structure data from 2010 to 2014 through data envelopment analysis. Through the empirical study to find the influence of difference ownership structure on the efficiency of commercial banks, and provides suggestions for the reform of China’s commercial banks’ ownership structure.Empirical study shows:(1)the ownership concentration have a significant impact on the efficiency of commercial banks, the efficiency of commercial banks increases at the beginning and then decreases with the increase proportion of shares held by the largest shareholder and the top five shareholder, and the relationship between the proportion of top five shareholder and the efficiency of commercial banks more embodies negative correlation;(2)but the influence of ownership property on the efficiency of commercial banks is not obvious, a separate study shows the influence of state-owned shares and legal person shares on the efficiency of commercial banks is not significant, only the foreign legal person shares have a significant impact on the efficiency of commercial banks;(3)there is no stable rule between the ownership balance and the efficiency of commercial banks, but when the proportion of shares held by the largest shareholder is significantly more than the proportion of shares held by the second largest shareholder, it will significantly reduce the efficiency of commercial banks.