The Estimating Research On The Efficiencies Of Chinese Commercial Banks Based On Parameter Approach

Efficiency is a concentrated embodiment of commercial bank's competition. The appraisal research of commercial banks' efficiencies is good for setting the financial regulation for the Chinese bank supervision authority, is good for Chinese commercial banks to judge the efficiency level distance from other bank system and promote their own efficiency level, is good for Chinese commercial bank embranchments' resource allocation optimizing and efficiency promoting, at last it is significant for the stability and development of Chinese financial system.The paper is divided into seven chapters. The first chapter is about the issue selection gist, relative research review, research approach, technical route and research content. The second chapter applies parameter method to appraise Chinese commercial bank's cost efficiency. The third chapter applies parameter method to appraise Chinese commercial bank's scale economy. The forth chapter separately applies parameter and nonparameter methods appraising the monomial output technical efficiency and overall output technical efficiency. The fifth chapter is the analysis of internal infective relationship of Chinese commercial banks' efficiencies. The sixth chapter is the analysis of influence factors of Chinese commercial banks' efficiencies. The seventh chapter is the conclusion and expectation. The main outcomes of the paper are shown as follows:1 We put forward the bank efficiency appraisal method considering the loan quality.The paper considers the nonperforming loan's influence on the loan's output efficiency. The existing researches use the total loan including the nonperforming loan as bank's output efficiency, thus if other condition unchanged, the more the nonperforming loans are, the higher banks' efficiencies we will get. The paper considers the nonperforming loan's influence on the loan output efficiency in the appraisal of Chinese commercial bank's cost and technical efficiency, selects the nonperforming loan from the total loan to use the effective loan output appraising banks' efficiencies, demonstrates the real cost efficiency and technical efficiency of commercial banks and solves the problem of reasonable appraisal of cost efficiency and technical efficiency of commercial banks. Through this way to appraise commercial banks' efficiencies, we can validate the viewpoint from the empirical point ofview that there is a significant influence of loan quality on the Chinese commercial bank's efficiency.2 We test the judgment that using the average cost function to calculate the scale economy is prior to the frontier cost function.Through the formula promoting and theoretical analysis, the paper shows that the frontier cost function neglect the cost non efficient item's influence on the output elasticity, so the scale economy of banks under the real resource allocation cannot be reflected effectively. The empirical test shows that the calculating outcome of average cost function is more reasonable than that of the frontier cost function, it is propitious to distinguish differences of the scale economy. So the judgment that using the average cost function to calculate the scale economy is prior to the frontier cost function is proved, the shortcoming of the existing research based on the frontier cost function is corrected, the problem of lacking apparent form of function in calculating the scale economy is solved.3 We demonstrate the monomial technical efficiency's influence on the overall technical efficiency.The existing researches use either the SFA to appraise the monomial technical efficiency, or DEA to appraise the overall technical efficiency, and the outcomes are approximately the same, but there scarcely is the influence relationship analysis between the monomial technical efficiency and the overall technical efficiency. Here, we use the SFA to appraise the monomial technical efficiency and DEA to appraise the overall technical efficiency, finally make use of multiple linear regression to analyze the influence relationship between the monomial technical efficiency and the overall technical efficiency, the paper shows that there is a positive influence relationship between the monomial output technical efficiency such as loan, security and investment and non-interest income and the overall output technical efficiency, shows the income structure's influence on the income overall efficiency of the state-owned commercial bank and joint-stock commercial bank, and provides a theoretical reference to Chinese commercial bank's changing of output portfolio and income structure. In the research, we comprehensively use the parameter and nonparameter methods to solve the problem that it is hard to use one method to analyze the monomial output technical efficiency's influence on the overall output technical efficiency.4 We draw a conclusion that there is a significant influence of factors such as asset scale on the Chinese commercial bank's efficiency.One factor may have a positive influence on the cost efficiency, while a negative one on the technical efficiency and scale economy. This paper uses the regression equation group to post one factor's interaction influence on the cost efficiency, technical efficiency and scaleeconomy. Comprehensively considering one factor's different influences can solve the partially phenomenon in bank's efficiency analysis.On the interaction of cost efficiency, technical efficiency and scale economy, we empirically analyze the relationship between different Chinese banks' efficiencies and their influence factors;change the existing research's weakness of isolating analysis. The paper demonstrates that there is a significant influence of assets scale, ratio of loans to deposits, property right, loan quality, ratio of fixed assets to the total assets on the Chinese commercial bank's cost efficiency, technical efficiency and scale economy, and there are different effects of five factors such as assets scale on the cost efficiency, technical efficiency and scale economy. The empirical analysis gives an effective way to improve the Chinese commercial bank's efficiency.