The Research On Business Efficiency Evaluation Of Banks In China Based On RS-DEA

The commercial bank is an significant part of the financial sector, and the financial industry is the core industry to boost the economic development in China. Since the global financial crisis, the global economy is in a downturn. Affected by this, World’s major economics like Europe and US can’t anabiosis completely. Affected by the global economic integration, the domestic economic situation has been not optimistic too. Furthermore, Chinese commercial banks is facing with more and more intense market competition. On the one hand, foreign banks had explored constantly and tried to penetrate in the Chinese market; on the other hand, recently the private banks had been approved to establish, other financial institutions had been active too, so faced with the deepening of the reform of the financial system and the progress of interest rate market in our country, commercial banks in our country must take effective measures to improve operational efficiency. Bank efficiency is the feedback of the own resource utilization; also is an effective method to evaluate the core competitiveness of commercial banks. It is very necessary to study the efficiency of Chinese commercial banks,which is good not only for seeking the manage problems of commercial banks in China,but also for providing suggestions to improve the competitiveness of commercial banks in our country.In this paper, on the base of collecting and sorting out the data, by taking Chinese 26 commercial banks as the research samples, and choosing the number of employees, fixed assets, deposits, fees and interest expenses as input indicators, selecting the loan, business income, interest income, returns on equity and total profit as output indicators, the operating efficiency of Chinese commercial banks was evaluated by DEA and RS. First of all, the RS was applied to determine the index system of evaluating operating efficiency for Chinese commercial banks, and then the number of employees and deposits were chosen as input indicators, the loan, interest income, and returns on equity were selected as output indicators; and more, based on the index system, the DEA was applied to evaluate the operating efficiency of commercial banks, then the manage problems for commercial banks were introduced in detail.Finally, the suggestions to improve the operational efficiency of commercial banks were put forward. This paper was divided into six parts, the main research contents were as follows:In the first part, the development status of Chinese commercial banks and the increasingly fierce competition were introduced; the importance and necessity of study for commercial banks’ operation efficiency were explained. The research status at home and abroad about this issue were summarized, furthermore, the research ideas, research methods and innovation of this study were introduced.In the second part, the related concepts involved in the article were introduced in detail; the methods for evaluating operating efficiency and establishing index system were reviewed, which lay the foundation for the following study.In the third part, the data envelopment analysis and rough sets have been introduced in detail. The data envelopment analysis models under constant returns to scale and the attribute reduction based on rough sets have been introduced according to the study, which have lay the foundation for the empirical.In the fourth part, by taking 26 commercial banks as the research samples; based on theory of DEA and RS, the paper chose the five input indicators(the number of employees, fixed assets, deposits, fees and interest expenses)and the five output indicators(the loan, business income, interest income, returns on equity and total profit) to reduce. Finally, the index system to evaluate the operating efficiency of Chinese commercial banks was established. The number of employees and deposits were chosen as input indicators; the loan, interest income and returns on equity were taken as output indicators.In the fifth part, based on the above results, DEA was applied to evaluate the operating efficiency of commercial banks in China. Then, the manage problems of commercial bank in China were pointed out, the suggestions to improve the efficiency of commercial banks in our country were put forward.In the last part, this paper made a summary of the researches and pointed out the shortcomings for its further development. Then the paper put forward the suggestions to improve operating efficiency of Chinese commercial banks.