Analysis Of The Efficiency About Listed Banks In China Based On Stochastic Frontier Models

Chinese economy has maintained solid growth since the socialist market economy was established,and international standing of renminbi is constantly on the rise.In the meanwhile,China actively promotes the internationalization of the renminbi that from the introduction of the pilot project of cross-border renminbi trade settlement in 2009 to the formal inclusion of renminbi's in SDR basket in 2016,the internationalization of the renminbi constantly speeds up its progress.The internationalization of the renminbi directly pushes the growth of cross-border renminbi business of commercial banks,influencing the business model and scope of business of commercial banks.On this basis,this article focused on studying the influences of the internationalization of the renminbi on Chinese commercial banks,which would has a great practical significance.Based on the expounded of the theory,this article built the panel data stochastic frontier models,tring to explore how the internationalization of the renminbi influence the efficiency of Chinese commercial banks from route,direction and intensity.First of all,on the basis of reviewing the relevant literature,this article expounds the internationalization of currency and the efficiency of commercial banks,analyzing the impact of RMB internationalization on the efficiency of China's commercial banks from the qualitative point of view.Secondly,this article focused on analyzing the theoretical basis of stochastic frontier models,and built frontier production function according to the production and operation of China's commercial banks.Finally,this article utilized panel data stochastic frontier model proposed by Battese and Coelli(1995)to evaluate the influences of the internationalization of the renminbi on the efficiency of Chinese commercial banks.This part chose the amount of cross-border renminbi settlement business,global market share of the renminbi in global payment,SCB Renminbi Globalisation Index(RGI)and BOC Cross-border RMB Index(CRI)to evaluate internationalization of the renminbi,and selected labor force,loanable fund and owner's equity as the input indicators for frontier production function,net margin as the output indicators,and then selected 16 listed commercial banks as samples to perform the empirical analysis of the influences of the internationalization of the renminbi on the efficiency of Chinese commercial banks.The results indicated that the technical efficiency of sample banks showed obvious growth trend as influenced by the internationalization of the renminbi,and the growth of technical efficiency is mainly from two aspects: the establishment of overseas branches and the increase of business scope,the two have raised the profit level of commercial banks to some extent.Secondly,the technical efficiency of China's listed commercial banks as a whole is at a relatively high level,which is up to 0.834911,and showed a clear growth trend.Compared to state-owned banks,the technical efficiency of joint-stock banks is relatively low,and showed a relatively large fluctuation.The main contributions of this article are as follows: Firstly,the article uses the method of qualitative and quantitative analysis to study the influence of RMB internationalization on the efficiency of China's commercial banks,which breaking the limitations of existing research on the impact of RMB internationalization on China's commercial banks from the theoretical level.Secondly,it expounds the influence path of RMB internationalization on the efficiency of China's commercial banks,enriching the theory of internationalization of RMB and the efficiency of commercial banks.Finally,it could better simulate the production process of commercial banks and improve the accuracy of the research by using stochastic frontier models to analysis the efficiency of commercial banks.