Operating Efficiency Of Commercial Banks In China And Its Relationship With Structure Of Employees' Educational Level

SFA and DEA,as two typical methods for efficiency analysis,were first introduced in 1977 and 1978 respectively,raising the certain on efficiency study.Bank,as the most important financial intermedia,is one of the focuses in this thrive of study.Relevant studies began to show up late in 1980s in western countries,while about 10 years later in China.Chinese researchers not only calculated the efficiency score of China commercial banks,but also tried to find the influencial factors,ranging from macro variables as GDP,to industry variables as Herfindahl-Hirschman Index,and to micro variables as shareholding ratio by foreign capital.Since the enrollment reform of high educational system launched by minister of education in 1999,the number of college graduates has been increasing rapidly,thus transforming the educational structure of China's labor force after they took up their careers.Banks attracted many of those graduates for the competitive salary and welfare,so banks experienced this structural transformation too.But how this transformation impacted banks' operating efficiency remains unkown,cause there is no relative study about it.Based on DEA and Malmquist TFP Index,this study calculates the technical efficiency and TFP change of 14 large banks from 2007 to 2015 in China,and decomposes the latter into efficiency change and technology change.After analyzing the probable causes of the change,this study runs a panel regression of TFP change on few explanatories including the structure of bank employee's educational level and rate controls,providing a possible answer.