An Analysis Of The Operational Efficiency Of Minsheng Bank Based On DEA Model

With the economic globalization and financial system reform of boom hits,the banking market in China has reached an unprecedented fierce competition situation.In the face of a complex and ever-changing external environment and fierce competition with the industry,Minsheng Bank,as China's first privately-owned nationwide joint-stock commercial bank,will face greater pressure from competition.If Minsheng Bank wants to maintain stable development,it must improve its comprehensive competitiveness,and operational efficiency is a criterion for examining the level of an enterprise's overall competitiveness.Therefore,it is necessary to study the operating efficiency of Minsheng Bank and find out ways to improve its operating efficiency.This thesis is based on data envelopment analysis(DEA),selects Minsheng Bank as a case study,through the horizontal comparative analysis and longitudinal comparative analysis and study the operating efficiency of Minsheng Bank.The CRS and VRS models of DEA were selected horizontally.Based on a static perspective,Minsheng Bank was compared with the benchmarking bank ICBC in state-owned banks,China Merchants Bank in joint-stock banks,Industrial Bank,CITIC Bank,and Beijing Bank in city commercial banks.The three dimensions of technical efficiency,pure technical efficiency,and scale efficiency were used to evaluate the gap between Minsheng Bank and comparative sample banks.Longitudinal Comparison Select the DEA-Malmquist index model to measure and analyze the data of Minsheng Bank between 2011 and 2016,and evaluate the changes of Minsheng Bank's operating efficiency over the six years from the index of total factor productivity change and its decomposition.The research results show that the comprehensive technical efficiency and pure technical efficiency of Minsheng Bank are at the lowest level among all comparative sample banks,and their scale efficiency level is relatively high,but only higher than CITIC Bank in the comparative sample banks.Judging from the index of total factor productivity change and its decomposition,the overall trend of 2011-2016 is showing a slight upward trend,but since 2014,the total factor productivity of Minsheng Bank has begun to decline.A comprehensive analysis of the horizontal and vertical analysis of Minsheng Bank reveals that Minsheng Bank's operating efficiency is relatively poor.This is mainly due to the fact that Minsheng Bank's ownership structure is toofragmented,the business division system is weakening,and risk management is low.Based on the above analysis results,this paper proposes improvement measures for the improvement of Minsheng Bank's efficiency,including strengthening credit risk control,controlling asset size,accelerating technological progress and technological innovation,expanding intermediate businesses,and promoting the reform of large business units.