Double Efficiency And Its Influence Factors Of China's Rural Commercial Banks: An Empirical Study

Rural commercial banks play an important role in China's rural financial system and have made important contributions to the development of China's rural financial market and the alleviation of problems concerning agriculture,countryside and farmers.Since its inception,rural commercial banks have assumed the responsibility of serving the county economy and supporting the development of agriculture,countryside and farmers.However,existing research focuses on the economic efficiency of rural commercial banks and ignores its social efficiency.If we do not examine the double efficiency at the same time,the conclusions are not comprehensive enough.Therefore,this paper studies the double efficiency of rural commercial banks,and discusses the factors affecting the efficiency,in order to provide practical suggestions for the development of rural commercial banks.This paper first introduces the research's background and significance.Secondly,it theoretically defines the concepts of double efficiency of rural commercial banks,and points out the contradiction and unity between them.Thirdly,the economic efficiency and social efficiency of rural commercial banks are calculated respectively based on the SBM model which takes into account the non-expected output.Fourth,it explores the direction and degree of internal and external factors' influence on bank efficiency,and analyzes the mutual influence degree of rural commercial banks' double efficiency.The results show that the social efficiency is lower than the economic efficiency.From the perspective of regional differences,the average double efficiency of rural commercial banks in the eastern region is lower than that in the central and western regions.From the perspective of scale differences,the economic efficiency of large banks are higher,while the social efficiency of small banks are higher.Among the internal factors that affect efficiency,the loan-to-deposit ratio has a negative effect on economic efficiency.The increase in the proportion of bank assets,capital adequacy ratio,and ROE is conducive to the improvement of both efficiencies.In terms of the influence of external factors,the proportion of primary industry has a positive effect on the two types of efficiency.There is a positive correlation between the total power of per capita agricultural machinery and social efficiency.Although rural disposable income has a positive impact on economic efficiency,the impact degree is not high.Further investigation revealed that the double efficiencies promote each other.The article concludes by suggesting that rural commercial banks should clarify their own development position and focus their business development on the township market;appropriately expand their business scope and pay attention to the differentiation of financial services.