The Research On The Technical Efficiency Of China’s Commercial Banks Based On Factor Analysis-DEA Model

Commercial banks are the significant elements of the financial system and play a fundamental role to the economic and social development.With the opening up of the banking industry、the marketing of interest rate and the impact brought by internet finance, the fierce market competition makes the China’s commercial banks’ efficiency becoming the research content of the academic and the banking industry.The present researches on the measurement and the influential factors of commercial bank’s efficiency would not only provide commercial banks with empirical date for allocation of resources and management strategies,but also provide regulatory authorities with the theoretical basis. It has significant meaning to the restructuring,development and stabilization of banking industry in China.This paper constructs the factor analysis-DEA model. By using this method, the technical efficiency value of the sixteen listed commercial banks in our country is calculated from the static point of view.It uses Malmquist model to analyze the selected sample banks’ change of technical efficiency from the dynamic angle. In addition, a variety of factors which affect the efficiency of commercial banks were analyzed by Tobit regression. The results show that:during the period of 2007-2014,the technical efficiency value of commercial banks in our country showed a steady upward trend. But a large number of commercial banks in China are DEA invalid. Their resource usage is not up to the best and the waste or low use of efficiency still exist in their input. The technical efficiency of state-owned commercial banks is lower than joint-stock commercial banks and city commercial banks. The market share and the expense ratio of the asses are negatively related to the technical efficiency of China’s commercial banks from the view point of the influencing factors. Innovation and technical efficiency show positive correlations. China’s commercial banks should control the expansion of the scale, reduce the expense ratio of the assets and continue to carry out technical innovation to improve the efficiency.