Efficiency Measurement Of The Commercial Banks-A DEA Approach

Commercial banks has been playing an important role in economy. Especially when facing the opening stage, the long-existing flaw dwarfs development. So what can we do and how we could do becomes a serious problem.DEA (Data Envelopment Analysis) is used to analyze the 2000 to 2003 input/output efficiency of 14 banks in operating, payoff and increasing. Models are used to carry out results. Through analyzing, we get a better understanding of the bank efficiency in China.Conclusions show us that, some 20% of banks were identified as inefficient each year, and approximately more than 30% of the total inputs/outputs of inefficient banks are excessive/deficient, with inputs proportionately more so than outputs. Joint-stock banks have done a better job than nationalized banks on the whole.The difference efficiency mainly lies in different framework and resource quality, thus it is suggested higher assets quality is more urgent for banks than quantity expansion, innovation, medial operation and E-banks is a good method to solve the problem.