Research On Operating Efficiency Of LY Bank

"The guidance of the State Council on Supporting Henan Province to accelerate the construction of the Central Plains Economic Zone" was promulgated and implemented in September 2011,which means that the construction of the Central Plains Economic Zone has officially become a national strategy.At the same time,this has also brought new opportunities to the development of Henan Province.LY City is the second largest city in Henan Province and will be as a core growth factor in the construction of the Central Plains Economic Zone.LY Bank is headquartered in LY City,and its overall development level is at the forefront of city commercial banks in Henan province,which plays an important role in promoting the economic development of Henan Province.In the new economic normal environment,financial competition has become more intense,and the requirements for LY Bank's operating efficiency level have become stricter.In the future,the development of LY Bank faces greater challenges.The operating efficiency of LY Bank is not only related to whether it can survive better in the competition,but also it can reflect the development status of LY's financial service industry.This article selects 15 city commercial banks as the comparative analysis sample of LY bank.First,the basic model of DEA-BCC models are used.The sample city commercial banks are analyzed from the three aspects of profitability,service,and sustainable development capabilities from 2013 to 2018.A static analysis of the operating efficiency of the year shows that in the analysis of the three aspects of LY Bank's index system,the comprehensive technical efficiency is poor,and the performance of the comprehensive technical efficiency is roughly similar to the performance of the scale efficiency,indicating that the value of the comprehensive technical efficiency is low.The main reason is that scale efficiency is low,which shows that LY Bank's own scale status,internal management level,and resource allocation efficiency need to be adjusted.At the same time,the input redundancy of LY Bank is further analyzed,and the reasons for its poor efficiency and improvementmethods are given.It is found that LY has different degrees of redundancy in outlets,operating expenses and fixed asset investment.Then,using the Malmquist index method to analyze the operating efficiency of 16 sample city commercial banks based on a dynamic perspective,it was found that in the profitability and service capacity evaluation indicators,the total factor production efficiency of LY Bank was more constrained by the level of technical efficiency.The decomposition and technical efficiency decrease are mainly due to the decline in scale efficiency,which also confirms the conclusion obtained by static analysis.So LY Bank should adjust its scale.In the evaluation indicators of sustainable development capability,the decline in the total factor production efficiency of LY Bank is mainly due to the low level of technology,which indicates that LY Bank should improve its internal management level.The innovation of this article lies in the qualitative and quantitative analysis of the operating efficiency of a single city commercial bank based on dynamic and static perspectives.Unlike the previous article,which only evaluates the overall efficiency of the banking industry,it will not only help improve LY Bank's own operating efficiency,but also can provide reference for other similar city commercial banks.Finally,this article proposes countermeasures to improve the operating efficiency of LY Bank,and improves the operating efficiency level of LY Bank by improving the efficiency of resource allocation,enhancing innovation capacity,expanding market share,reducing non-performing loan ratio,and strengthening the talent building of LY Bank.