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Measure Analysis Of China Commercial Bank’s DEA Efficiency And Malmquist Performance Indicators

Posted on:2016-11-29Degree:MasterType:Thesis
Country:ChinaCandidate:S L YanFull Text:PDF
GTID:2309330503451230Subject:Finance
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Measuring bank performance is always a hot topic theoretically and practically, performance indicators can be divided into efficiency and productivity. The research methods of performance evaluation have been keeping innovating. Based on the DEA and Malmquist Productivity Index of Yang(2010), this study selects 12 representative banks as the objects of study from 2010 to 2014. We firstly analyze the dynamic changes of efficiency and productivity, and then analyze specifically bank performance in three aspects of samples: performance of each year, tendency, and comparison of the individual bank. According to the above research results, we finally make some recommendations to improve the banking efficiency and productivity of China.From the analysis of empirical results, the average technical efficiency of samples is floating between 0.6-0.9, which shows that if the Chinese listed Banks can take advantage of the existing technical conditions at that time during the period of 2010-2014, they can decrease the proportion of investment by 10%-40% under the condition of keeping the output unchanged. Shanghai Pudong Development Bank and Industrial Bank Co.,Ltd have certain advantage in technical conditions and are the first banks to implement the reform of the credit bank, so their performance of efficiency is best while the worst one is Bank of Agricultural.Average annual Malmquist productivity index and decomposition(Tech) are greater than 1, which means that there is a trend of improvement of productivity of the whole Chinese listed Banks due to the technical progress.Pure Technical Efficiency of Shanghai Pudong development bank and Industrial Bank Co.,Ltd is 1 respectively, so their management during the reporting period is more efficient. However, the Pure Technical Efficiency of Bank of Communications and Agriculture Bank of China is less than 1, which shows that there is still space for improvement of the efficiency of management of the two banks.
Keywords/Search Tags:Measuring bank performance, DEA, Malmquist productivity index
PDF Full Text Request
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