Efficiency Improvement Of Chinese Banking Industry And The Choice Of Optimal NPL Ratio Under The Control Of NPL Target

Under the background of the "new normal" of the economy,the Bank of China has undergone tremendous changes,forming a multi-level banking system.What is the quality of its development behind the huge changes in the Chinese banking industry?And the non-performing loan ratio is an important indicator for monitoring the development quality of commercial banks.Whether the non-performing loan ratio of the Chinese banking industry is at a reasonable level is a question worthy of our research and consideration.For this purpose,this paper expands the behavioral analysis model based on the directional distance function,expands the construction of the DDF-AAM model that changes the target policy of non-performing loans,and uses the bank performance evaluation system Metafrontier-Malmquist-Luenberger productivity index to measure the maximum productivity of the banking industry.The optimal non-performing loan ratio is an attempt to answer whether the existing non-performing loan ratio of the banking industry is at an appropriate level.If not,should it be in the direction of expanding the non-performing loan ratio or in the direction of reducing the non-performing loan ratio.Through in-depth analysis and discussion of these issues,this article finds:(1)In recent years,with the rapid development of the banking industry,the bank's credit scale is also expanding continuously and steadily.In comparison,the size of normal loans is at a reasonable level,But the average level of non-performing loans has risen rapidly;(2)Adopting a moderate target policy to reduce the proportion of non-performing loans can increase the MMLPI of China's banking industry,thereby increasing productivity.Except for policy banks,the optimal non-performing loan ratio of other banks is lower than the actual non-performing loan ratio,which means that the actual non-performing loan ratio is not at an optimal level and there is room for downward reduction;As for policy banks,their optimal non-performing loan ratio is higher than the actual non-performing loan ratio,and there is room for improvement.Policy banks can increase the non-performing loan ratio moderately;(3)The MMLPI value of each bank under the optimal non-performing loan ratio is greater than 1.Observing each decomposition section,it can be found that due to the large sample size,the development situation of different banks is different,and the value of the decomposition section of different banks is different We selected the most representative decomposition of large state-owned commercial banks and found that:the change in pure technology efficiency,the change in technology scale,the relative change in potential technology,and the change in scale efficiency under common and group boundaries are significantly greater than 1 compared to the four indicators.This can be a specific direction for us to change the non-performing loan ratio and improve bank productivity.