The Research Of A Business Efficiency Of A Branch In Hunan Of Bank A Based On The Market Share

The business scale of the Hunan Province branch of A Bank is at the top in Hunan Province currently,but it has poor profitability.This paper focuses on the influence of market share on the bank efficiency and conducts empirical research of the operational efficiency changes of the research sample.Firstly,this paper investigate the factors that influence the operational efficiency of A bank branch of Hunan Province between 2010 and 2014 from three dimensions:the deposit and loan market,risk control and profitability.The results showed that: the absolute size of the bank deposit and lending market is growing,but the market share has been shrinking;the condition of bad assets ratio and loan-to-deposit-ratio are associated with the financial environment of the region,the non-performing assets ratio of economic developed area is low and that of the underdeveloped regions is relatively high,and the loan-to-deposit ratio is related to the local net interest margin,the region with higher net interest margin has higher loan-to-deposit ratio;the stronger the scale of the bank's profit is,the poorer the profitability is after risk adjustment.Secondly,this paper empirically investigate the efficiency of A bank branch in Hunan Province with DEA method and believes that the external policies impact between 2010 and 2013 led to the bank's overall recession of operating efficiency.But after taking the market share of loans and deposits into consideration,the bank's operational efficiency is improved.This proves that the contraction of the loan and deposit market share of the bank optimizes the loan-to-deposit ratio and improves the management efficiency.Finally,based on the actual investigation and empirical analysis of the management efficiency of the Hunan branch of A bank,this paper proposes six ways to improve the efficiency:(1)improve the performance evaluation mechanism;(2)speed up the transformation of the branch;(3)strengthen risk management;(4)improve the ability of financial innovation;(5)promote the reformation of operation;(6)understand and apply the endogenous mechanism.