Empirical Analysis Of Chinese Joint-stock Commercial Banks Capital Efficiency Based On Panel Data

In recent years, due to the combined effects of the financial environment at home and abroad, the Chinese banking industry has been growing competition. If commercial banks want to win in the fierce and brutal competition, the key is to improve the core competitiveness. Efficiency is the concentrated expression of the bank's core competitiveness. To bank efficiency evaluation, it helps managers of commercial banks to clear itself in domestic and foreign banking sector, meanwhile, to recognize the gap between itself and other banks. Thus, it is a more targeted way to take measures to improve the operation and management, optimize the allocation of resources, realize effective management. Therefore, measuring the efficiency of Chinese commercial banks has a very important practical significance.This paper selects 15 Chinese commercial banks as the study sample. From 2001 to 2009, it is a total of nine years as the study period. From a static perspective, it evaluates technical efficiency, pure technical efficiency and scale efficiency conditions of the sample banks based on panel data model (M- BEE). Later, This paper makes use of the DEA-based Malmquist index to calculate the total factor productivity and its three components-technical change index, purely technical efficiency change index and scale efficiency change index of sample banks. And it is a more comprehensive analysis of the cross time dynamic evolution of commercial banks efficiency in China. Finally, This article uses a random effects Tobit model for quantitative analysis. It researchs on the micro-impact factors of affecting Chinese commercial banks' technical efficiency, pure technical efficiency and scale efficiency. As a result, it can clear the key factors of affecting efficiency changing, and find the improved direction for future.The results show that the technical efficiency of 15 commercial banks have an increasing trend year by year over the past nine years. Pure technical efficiency presents the characteristics of first decreases and then increases further decreased. The scale efficiency rises slowly and does not change significantly. Chinese commercial banks presentes improvement trends in total factor productivity. Technological progress is the main driver of the increasing total factor productivity. The technical efficiency, pure technical efficiency and total factor productivity of the joint-stock banks are significantly higher than the level of the state-owned banks. EA and ER have a negative impact on the efficiency of commercial banks. For LQ, LD, INO and ROA, there is a significant positive promoting role in the technical efficiency and pure technical efficiency. In addition, correlation coefficient of ROA is the largest, followed by the ER and LQ. It showes that improving the bank's profitability, reducing operating costs and enhancing the quality of assets can significantly enhance bank's efficiency level.