| Commercial Banks have always been the center of China’s financial system, among which five state-owned commercial banks by virtue of their large volume of assets, extensive customer base, and strong capital strength occupy the important position. The credit assets account for around 50% of commercial banks’ total assets, whose income is an important part of commercial banks’ total income. Thus it can be said that credit business is the foundation of our commercial banking business. In recent years, along with China’s economic change into the L-shaped cycle, the rapid improvement of internet finance, the disintermediation accelerated pace of financial industry, the further promotion of the interest rate market, and many other challenges, China’s commercial banks are facing the overall slowdown of profits. How to ensure the quality of credit assets in such new macroeconomic environment and to enhance its efficiency has becoming an urgent issue for commercial banks, especially the five state-owned commercial banks.Efficiency is the ratio between input and output, and thus the efficiency of credit assets can be formulated as the ratio of credit input and output which is affected by the macro and micro factors. In this paper, on the basis of established input- output model, four input indicators (number of employees, total fixed assets, operating expenses, customer deposits) and two output indicators (non-performing loan ratio, net interest income) are selected in the use of DEA method to evaluate 16 listed banks’ credit assets’ efficiency from the year of 2010 to 2015. Through the comparison to small and medium sized commercial banks, the five state-owned commercial banks’performance on credit assets efficiency are displayed clearly. We also use the multiple linear regression method to analyze these six factors’ impact on the credit asset efficiency and finally propose the relevant and useful policy recommendations.After a demonstration analysis, we draw the following conclusions:1、The efficiency of the banking credit assets shows a substantial decline after a slight upward trend in the past six years.2、The efficiency of the five state-owned banks’ credit assets is underperforming of small and medium sized commercial banks.3、 State-owned banks have lost their scale advantages and need to strengthen their internal management.4、The quality of the credit assets and human resources have an important impact on the efficiency, while high cost of deposits will reduce the efficiency. |
