Research On The Relationship Between Efficiency And Risk Of Commercial Banks In China

The adoption of the "new normal", the marketization of interest rates, and the financial challenges of the Internet, China's banking system is facing an environment of unprecedented complexity. Gainst a background of macro economic slowdown, a decline in earnings, asset quality problems, and financial reform, how to effectively improve efficiency and risk control has become an important problem for commercial banks ?This paper mainly goes into the efficiency and risk of commercial bank. Firstly, technical efficiency and the change of all production efficiency are calculated from perspectives of static and dynamic. Secondly, it uses factor analysis method to calculate the risk of commercial banks. Thirdly, the relationship between the efficiency and risk of commercial banks is studied by means of DEA method and Tobit model. The results show that the technical efficiency and pure technical efficiency of our country's commercial banks trend to decreasing firstly and then increasing; The technical efficiency of state-owned commercial banks decreases slower than that of joint-stock commercial banks and city commercial banks, and the distinctions of efficiency between the three kinds of banks decline; the risk of commercial banks showed a trend of decreasing first and then increasing; the commercial banks' technical efficiency, pure technical efficiency and all production efficiency after considering risks are higher than that without considering risks; For the full sample, the overall risk of commercial banks, non-interest income account for operational income, net interest margin have a significant positive impact on efficiency of the bank, the effect of size of the assets of commercial banks on bank efficiency is not significant; for different types of commercial banks, the impact of the integrated risk, non-interest income account for operational income, size of assets and net interest margin on efficiency is different; For the full sample, the credit risk factor and liquidity risk factor have a positive impact on the efficiency of commercial banks, and capital risk and operational risk factors have a negative impact on the efficiency of commercial banks,but the impact is not significant. Finally, on the basis of empirical conclusions, the countermeasures are put forward to improve the efficiency and to strengthen the risk management of banks.