The Efficiency Evaluation Of Chinese Commercial Banks

Bank are the important part of the financial system even the whole economic field in China,and commercial banks promote the development of China's economy through its unique functions.Commercial banks as a special enterprise,its efficiency is related to the management level of the whole bank.So many scholars all around the world study on the efficiency of bank actively to promote commercial bank's development.Evaluating the efficiency of commercial banks and analyzing factors that influence the efficiency.provides important support for the banks to adjust the allocation of resources and business strategy,also be convenient for regulatory agencies like CBRC to implement effective measures about the bank,which has an important significance for the long-term development of China's commercial banks and the transformation and upgrading.Firstly,this paper is summarizing the definition,the categories,measure method and other related knowledge of the efficiency of commercial banks,and introducing the CCR Model,BBC Model and Cross Efficiency Model of DEA.Then,20 commercial banks are selected as the object of study on the basis of related theory.Number of employees,total assets,shareholders' equity,total revenue,total profit,return on investment,and earnings per share,all of these 7 input-output indicators are selected and the data from 2009 to 2014 are collected and then they are calculated in the two stage cross efficiency model,so as to obtain the related conclusion.Finally,the factors affecting the efficiency of commercial banks of China can be analyzed and the related suggestions can be put forward.The research is suggesting that,the efficiency of three different banks are different.The comprehensive efficiency of the large state-owned commercial bank is lower than that of the joint-stock bank,and the efficiency of the joint-stock banks is a little lower than that of eity commercial bank.After the factors,which affect the efficiency of these banks,are analyzed,it can be found that the three main factors are macro economy,internet banking and the impact of private banks,earnings growth slowing and non-performing loans increasing.At last,on the basis of those factors,this paper put forward the appropriate measures and suggestions including deepening reform and improvng the utilization efficiency of financial resources of state-owned banks,strengthening risk management and internal control,and cultivating core competitiveness,encouraging competition,focusing on the development of small and medium size commercial banks,improving capital adequacy ratio and resource allocation efficiency.