An Empirical Study On The Impact Of Introducing Insurance Company's Equity On Commercial Bank's Operational Efficiency

With the rapid development of financial innovation and financial integration,the cooperation between commercial banks and insurance has been deepened in recent years.The cooperation between them is no longer limited to the counter sales of products,but the deeper integration of equity.At present,five state-owned commercial banks and most of the joint-stock commercial banks have been introduced in the insurance institutions in their ownership structure,we can see that this deep integration of bank insurance equity cooperation has become a trend.Equity cooperation under the bank-insurance cooperation will inevitably lead to changes in the ownership structure of commercial banks,and equity structure as a fundamental commercial banks,but also is the most important factor of affecting the internal management of commercial banks,its changes will also be have a significant impacts in operating bank efficiency.The efficiency of commercial banks is a comprehensive manifestation of its competitiveness in the financial market,fully embodies the sustainable development of commercial banks,It is alsoan important basis to prevent financial risks and promote the sustained and stable development of the banking industry.Therefore,it is of great practical significance and reference value to study the impact of insurance companies' share on the operation efficiency of commercial banks from the perspective of the change of ownership structure.Based on the above theories,this paper studies the impact of insurance companies' investment on the operational efficiency of commercial banks from the change of ownership structure.According to the current situation of China's insurance companies into the shares of commercial banks,this paper selected 14 commercial banks in 2006 to 2015 and their balance sheet data and the top ten shareholders of the shareholding situation,according to the previous commercial banks operational efficiency research conclusions,This paper chooses the three indexes to measure the efficiency of commercial banks and the influencing factors of the efficiency of commercial banks,including the insurance company's stock,and analyzes the relationship between the insurance company's shares and the efficiency of commercial banks by using the combination of single index and comprehensive index: In single index,the author analyzes the influence of the insurance company on the operational efficiency of the commercial banks from the three dimensions of the liquidity,profitability and security of the commercial banks,and then forms the panel data according to the selected indicators,and establishes the multivariate regressionmodel to analyze the effect of the company's insurance shares on the operational efficiency of the commercial banks.In the analysis of the comprehensive index,the author adopts the DEA data envelopment analysis method,and select the interest expense,the operating expenses and the net fixed assets as the input indicators,The output chooses the deposit amount,the loan amount and the net profit as the analysis of indicators,after that,through the CCR model to calculate the efficiency of the sample commercial banks,and then introduce the Malmquist index to analyze the changes of the efficiency of commercial banks,and finally use the statistical model to study the impact of bank and insurance cooperation on the operational efficiency of commercial banks.Single-index analysis conclusion:(1)There is a significant negative correlation between the shareholding proportion of the insurers and the liquidity and profitability of the commercial banks,and the significant positive correlation with the safety;(2)There is a significant positive correlation between the the number of insurers in commercial banks and its liquidity,and there is a positive correlation with safetyinsignificantly,and the relationship with profitability is not robust.Comprehensive index points conclusion:(1)There is asignificant negativecorrelation between the shareholding proportion of the insurers and the operational efficiency of commercial banks;(2)There is a positive correlation between the number of insurers and the operating efficiency of commercial banks insignificantly.Based on the above conclusions can be seen,single-index analysis and comprehensive index points are consistent.Finally,the article puts forward relevant policy suggestions on the conclusion of the empirical analysis of the efficiency of the insurance companies in the commercial banks: Commercial banks should introduce insurance capital sciencely,and in the control of insurance capital accounted for the premise,to encourage commercial banks to introduce a number of insurance companies.