Analysis On The Operation Efficiency Of City Commercial Banks In Northeast China

As a special group and an important component of China’s banking industry,city commercial Banks,formerly known as urban credit cooperatives,were founded in the 1980 s.Their earliest business orientation was clear: to provide support for local economies and more convenient financial support for small and medium-sized enterprises.However,there are also many drawbacks,so a large number of urban credit cooperatives were transformed into urban commercial Banks,which not only solved the financial risks in the early stage,but also provided more professional financial services.In recent years,China has been carrying out continuous financial reform,and all kinds of commercial Banks are facing many challenges while gaining development.However,urban commercial Banks are more vulnerable to the impact of market changes due to their late start and weak capital.Efficiency improvement is an effective way to enhance the competitiveness of commercial Banks and an important goal of the supply-side structural reform of commercial Banks.In the context of the revitalization of northeast China,the commercial Banks in northeast China have their own characteristics.Based on this,this paper focuses on the northeast city commercial Banks,and studies the efficiency of the three provinces in northeast China,in order to find the problems in the efficiency improvement of the northeast city commercial Banks,and puts forward feasible Suggestions to improve the efficiency of the northeast city commercial Banks.The first part is the introduction.This paper mainly explains the background and significance of the topic,introduces the research framework and methods,expounds the innovation and shortcomings of this paper,and makes a literature review.From the relevant literature,we can know that,first,the domestic and foreign research on the efficiency of commercial Banks has been carried out,and the methods are gradually mature,and the index selection is also diverse.Second,in recent years,when analyzing the influencing factors of commercial Banks at home and abroad,we have shifted from the simple study of micro factors and the simple study of macro factors to the comprehensive consideration of macro and micro factors.The second part introduces the knowledge of bank operation efficiency and the model used in this paper.This paper analyzes the static efficiency of commercial bank operation using the total technical efficiency,pure technical efficiency and scale efficiency.After referring to certain literature,we decided to choose SBM super-efficiency model with bad output to analyze the static efficiency of commercial Banks,and used the Malmquist total factor productivity analysis method to analyze the dynamic efficiency of commercial bank operations.The third part selects the first discusses the selection of output and input index,then choose SBM containing bad output super efficiency model,and can be divided into three frame of reference for measurement and analysis of static efficiency,respectively,in northeast China city commercial bank as the frame of reference,the city commercial bank as the reference frame and the frame of reference for commercial Banks.Main conclusions include: to northeast city commercial bank as a reference set of static efficiency measurement and analysis,through the overall technical efficiency value analysis,set up a file the bank overall average technical efficiency is highest,shengjing bank,fuxin bank can also be achieved most technical efficiency effectively,yingkou bank overall technical efficiency of average performance is a bit weak.In the static efficiency measurement and analysis based on the reference set of urban commercial Banks,the average level of overall technical efficiency of some urban commercial Banks in northeast China,such as fuxin bank,shengjing bank ranked in the forefront of urban commercial Banks in China,showing a strong performance.According to the analysis of the nature of the commercial Banks,the five state-owned Banks are the highest,followed by the national joint-stock Banks.In addition,the overall technical efficiency of the national urban commercial Banks(including the urban commercial Banks in northeast China)is highly differentiated,which indicates that the development of the national urban commercial Banks has serious problems of different development progress.In the fourth part,the Malmquist index is used to analyze and measure the dynamic efficiency in three reference systems,namely,urban commercial Banks in northeast China,urban commercial Banks and commercial Banks.The main conclusion is drawn: in the dynamic efficiency measurement and analysis with the northeast city commercial Banks as the reference set,it can be concluded that the technical efficiency growth does not play a leading role in the Malmquist index growth of the northeast city commercial Banks.The efficiency of most urban commercial Banks in the northeast has improved.In the dynamic efficiency measurement and analysis with the city commercial Banks as the reference set,most of the northeast city commercial Banks in this five-year period of operation effect is relatively ideal,compared with the last period of statistics show an upward trend.In the dynamic efficiency measurement and analysis based on the reference set of Banks,from the analysis of the nature of commercial Banks,the local city commercial Banks were the highest,followed by the national joint-stock Banks,while the state-owned Banks ranked relatively lower.Some commercial Banks in northeast China have the problem of total factor efficiency decline and the operation effect is not good.The fifth part makes an empirical analysis on the influencing factors of city commercial Banks.Stata software is used to carry out static panel regression analysis on the data of city commercial Banks from 2014 to 2018,and then the regression results are explained.The following conclusions are drawn: we find that the ratio of deposit and loan to urban commercial Banks has an extremely significant impact,and the ratio of deposit and loan to urban commercial Banks has a positive correlation with their operating efficiency.However,the influence of innovation ability on the efficiency of city commercial Banks passed the significance test,and the influence coefficient showed a positive correlation.The influence of employee skills on the operational efficiency of city commercial Banks passed the significance test of 10% and showed a positive correlation.The last regional GDP growth rate passed the significance test,and there was a positive correlation between the two results.The countermeasures include: first,to strengthen the bank’s own management level.Second,financial innovation has become a trend,so we should strengthen the financial business innovation of urban commercial Banks in northeast China and pay attention to the development of Internet finance.In addition,there have been frequent financial market shocks in recent years,so government agencies should improve their ability to cope with macroeconomic changes.