Evaluation And Research On Efficiency Of China's Commercial Banks Based On Cross Efficiency Of Network DEA Model

At present,China's financial system is dominated by banks and the healthy development of the banking industry has important significance for China's economic development.But with the deepening of financial reform,the disappearing of stock dividend,the rising of the Internet banking,the environment becomes increasingly complex,and the competition is more intense.It has become urgent for enhancing the competitiveness of commercial banks.And one of the effective ways of strengthening the competitiveness is to improve operational efficiency.Therefore,it has important theoretical and practical significance for seeking paths of improving operational efficiency to evaluate the efficiency of commercial banks.In the Research on the efficiency evaluation of commercial banks in the past,there has been controversy regarding the construction of the evaluation index system,the subjectivity is stronger for only relying on qualitative method to select.Moreover,in previous studies,it regards the inputs,such as the human,money,matter as input indicators in the first stage,but it's not in line with the actual situation of commercial bank operation.In addition,it only considers the self-assessment thinking,ignoring his assessment in previous studies.So that the evaluation is not comprehensive.Through the study on management theory of commercial banks starting from the actual situation of China's commercial banks,the paper divides the business process into two stages-capital raising and operation,using the improved principal component analysis method to screening indexes and construct the index system of screening index scientifically and reasonably.On this basis,the paper uses cross efficiency evaluation model based on weight-balanced to solve the problem of non-uniqueness of cross efficiency,adopts the cross entropy method to deal with the Aggregation problems of cross efficiency and construct the cross efficiency evaluation model of each subsystem and the chain system in commercial banks.Using the above ideas,we conduct an empirical study on the efficiency of China's commercial banks from 2010 to 2014 and calculate the cross efficiency of each subsystem and chain system in the process of china's commercial banks.The analysis reveals that from the financing stage,the cost is low and the efficiency is high in funds sources of state-owned commercial banks,but it is too dependent on traditional deposit and loan business.So the joint-stock commercial banks and city commercial banks will be more competitive with the market-oriented interest rate reform;from the capital operation stage,the efficiency of all commercial banks in the capital operation stage are to be improved.Sheet business will be a new profit growth point..In addition,the risk control of non-performing loans play an important role in achieving security goals and improving efficiency for commercial banks;from the overall system,the operating efficiency of commercial banks is generally not high.And there is a big room for improvement.The average efficiency of state-owned banks is slightly higher than joint-stock commercial banks.And it's difficult from the previous research that the average efficiency of joint-stock commercial banks is higher than state-owned commercial banks.However,if considering the influence between system efficiency and the size of the gap in two types of commercial banks,we find the management ability of the state-owned banks have no absolute advantages.Overall,the growth trend of shares commercial banks and city commercial banks is more obvious.And the major commercial banks will face increasingly fierce market competition.Therefore,this paper puts forward some relevant suggestions,such as actively carrying out business innovation,broadening the sources of funding;reasonably control costs,pursuing maximization of scale effects;based on business assets,opening sheet business-this new blue ocean;establishing the risk assessment mechanism,strictly controlling non-performing loans;seizing the opportunities,meeting the challenges,and further deepening the reform of the banking industry.