Study On The Operation Efficiency Of Commercial Banks Based On DEA Cross-efficiency

Since China successfully dealt with the financial crisis in 2008,the financial industry of China has made remarkable achievements.With the development of economic globalization,China's plays a more important role in the world economy.The development of China's financial industry also promotes the reform of China's financial market,the market-orientation of interest rates,and the opening of China's banking market to foreign capital.As a result,the government gradually reduces their participation in the financial market,promoting the market-orientation of China's banking industry.In the process of financial system reform,some deep-seated contradictions and problems such as the continuous outbreak of non-performing assets in Banks,outdated supervision mode and management inefficiency,illustrates that there is still large room for China's banking industry to enhance operation efficiency.With the lowering of the threshold of banking access and the impact of the development of Internet finance,China's banking industry has to improve its management capability and service quality in order to gain a place in the financial market.The study on bank efficiency can not only evaluate the efficiency of each bank,but also find out the internal and external factors that cause the low efficiency of Banks,and then improve the efficiency by improving these factors.Therefore,on the basis of related theories and literature,this paper analyzes the current situation of the banking sector and the contradictions.Taking listed commercial Banks in China from 2010-2017 as sample,this papers concludes evaluation method on the basis of the financial index system,and carries out comprehensive evaluation of DEA cross effiency on the basis of annual reports of the listed commercial Banks in China,and supports horizontal comparison of banking performance.Through the analysis,the following three conclusions are found :(1)based on the analysis of the ownership of China's listed commercial Banks,it is found that the efficiency of China's commercial Banks is higher than that of state-owned Banks,and joint-stock commercial Banks have the lowest efficiency.It shows that the scale dividend possessed by state-owned Banks is still there,but the management level and technological capability of commercial banks brings more obvious operation efficiency.(2)through the comparison of two-stage self-evaluation and other-evaluation process,it further proves that the cross-efficiency of DEA can effectively distinguish the advantages and disadvantages of decision-making units,and is of certain significance in the process of decision-making unit evaluation.(3)By analyzing the influence of the five factors(property rights,asset scale,asset allocation,quality and product innovation)on the banking efficiency,we found that asset scale,the deposit and lending ratio,non-interest income ratio are key factors on the operation efficiency of listed commercial Banks.As a result,it is important to strengthen the management of bank scale,asset allocation and innovation.To some extent,the above results provide a direction for performance management and efficiency evaluation of listed commercial Banks in China.