The Efficiencies Of Banks Between Domestic And Foreign

With the development of the economic, financial activities have penetrated into society widely and have become the corn of the modern economic, commercial banks, as the main capital distributing organization in the economic activity, is the most important part of the financial system of all country, so it is important to research the efficiency of the commercial banks. The efficiency of the bank not only reflect its own efficiency, but also affect the development of the economic of the whole country and support it.After joining in the WTO, the bank is the first field to be opened and the foreign banks entered obviously fast. According to the agreement of the WTO, China will gradually cancel the limit to the foreign banks and permit them to serve all Chinese customers. Foreign banks will be competitive with domestic banks in more and more field.This paper uses DEA to calculate the efficiencies of 25 banks and obtain the factors which affect the efficiency of the banks by regression analysis. The result shows the efficiencies from 2005 to 2007 decline. The foreign bank decline sharply while the domestic banks decline steadily, especially in 2007.After calculation, we know the excess liquidity of the interior lead the decline of the domestic banks and the financial crisis lead the decline of the foreign banks. At last, the paper gives some advices to development the efficiencies of the banks.This paper consists of five chapters.Chapter1:Introduction.The introduction of this paper elaborates on the research background, meaning of choosing this subject, research summary relatively, ways of researching and the innovation of the paper.Chapter2: Categories and ways of the efficiency.Chapter3: Way of the paper. Introduce the principle and model of the DEA.Chapter4: Calculate the values of the banks by the way of DEA.Chapter5: Analysis the difference of the banks by regression analysis and gain the reasons of influence values of the banks.At the end, it's conclusion.