A Study On Commercial Banks Efficiency And Effect Factors In China

After join in WTO, banking business in our country has faced more intense market competition, in the such living circumstance ,if banking business wants to develop continuously, it must improve its competing power. We know that bank efficiency presents bank competing power, therefore, when improving its efficiency, domestic commercial banks could have the power to compete with international famous banks.The paper compares the advantage and disadvantage of two kinds of approaches of measuring bank efficiency on the basis of conclusion of foreign and domestic research documents.The paper makes use of the data envelop analysis to computer the efficiency of 12 commercial banks in 2001 and 2002,the bank efficiency includes Cost efficiency, technique efficiency, disposal efficiency, pure technique efficiency, scale efficiency. Input Variables: interest expense, operation expense, asset discount, owner capital. Output variables: interest income pre-tax profit After comparing the change of bank efficiency of commercial banks in 2001 and 2002,we find domestic commercial bank efficiency in 2002 is higher than in 2002.After analyzing the difference among every commercial bank efficiency ,we find the efficiency of four big banks is lower than newly developing commercial banks'.At last the econometrics model is put forward and we confirm that independent variables that the property right structure , the loan quality ,the scale of bank assets, the capital adequacy, the income of banks' middle product and so on .Then taking the efficiency values computed as the dependent variables .The research conclusion : these factors including the property right structure , the loan quality, the income of banks' middle product and the capital adequacy have an apparent effect on domestic commercial bank efficiency.