Research On Efficiency Of Chinese Commercial Banks On DEA Model And Affecting Factors

China's banking industry is currently facing unprecedented challenges.First of all,the complex and volatile economic environment for the development of the banking industry has put forward higher requirements.Second,China's commercial banks are less competitive than outstanding foreign banks.Third,securities,insurance,asset management,and private equity continue to develop,and the proportion of direct financing in the capital market has increase.Last but not the least,with the rapid development of Internet technology,financial technology is also making rapid progress.In the face of constantly eroded market share,commercial banks must face difficulties and strive to improve their market competitiveness.For these reasons,I attempt to explore the factors affecting the efficiency of Chinese commercial banks.I reviewed a large number of relevant documents at home and abroad.After comparing the evaluation methods of bank efficiency,I choose to use the DEA model to measure and evaluate the operating efficiency of commercial banks.Combined with the actual operation and the results of previous studies,the input variables are defined as: net fixed assets,number of employees,operating expenses;output variables are defined as: loans(without non-performing loans),net profit,loan to deposit ratio.This paper uses the data of 15 listed banks for the period of 2012-2016 to measure the comprehensive technical efficiency,and on this basis,it is further decomposed into pure technical efficiency and scale efficiency.The results show that in terms of comprehensive technical efficiency and pure technical efficiency,the level of commercial banks in China is relatively high,and the efficiency value of the joint-stock system is generally higher than that of state-owned banks;in terms of scale efficiency,the efficiency value of state-owned banks is higher.Then,this paper uses the Tobit model to regress the influencing factors of efficiency,and concludes that ROTA,the proportion of non-interest income,the equity ratio,the property rights structure,and the loan-to-deposit ratio have a significant positive correlation with the bank efficiency.The non-performing loan ratio has a significant negative correlation with the banking efficiency.Finally,this paper integrates the research results of efficiency and influencing factors,and puts forward its own suggestions on how to improve the operating efficiency of China's commercial banks.