Analysis On Efficiency In Chinese Commercial Banks And The Decisive Factors

Banking is the channel of national economy fund flow, and the bank efficiency can directly reflect the competence of a bank. As banking will be completely opened to the world market in the near future, the competition within banks will be increasingly intense. The success of the development of a commercial bank in the long run finally depends on the efficiency. As well, the issue of efficiency is one of cores in Economics. This paper chooses commercial banks efficiency as the research object in order to try to analysis the situation of bank efficiency, and the index of bank efficiency, what factors to influence bank efficiency and how to improve banks efficiency.This paper, firstly, reviews briefly some related research on foreign and native banks and makes an exact definition of bank efficiency. Secondly, In order to keep abreast of native principal banks, we compare these banks from profit ability, controlling cost ability and asset safety using the single factor comparison. Then based on above, we make a scientific appraisal about these banks exploiting the Factor Analysis. The result shows that the efficiency of shareholder-owned banks in a whole exceeds the Stated-owned banks, and the city-banks differ from each other, but as a whole it is similar to Stated-owned banks. We have estimated the efficiency of principal banks in 2001-2004 exploiting the Data Envelopment Analysis (DEA), while the total deposit, the total loan and profit are specified as the outputs, and labor, operation expense as inputs. The estimate result shows the same conclusion as the Single Factor Analysis and the Factor Analysis. Based on above, we find out ways to improve bank efficiency by computing the frontier edge project and the saved percentage of not DEA efficiency. The research on the decisive factors of bank efficiency is conducted while the DEA efficiency is specified as the dependent variable. The result verifies the"equity decision theory"and indicates that equity structure is the basic cause of lower efficiency of State-owned banks, while diversified equity of shareholder-banks can improve their efficiency.This paper, lastly, put forward to improve bank efficiency by analyzing what different influence to different factors on the three equity types bank. State-owned banks should deepen equity reform, improve governance structure, and improve asset quality, increase the rate of capital adequacy and strengthen staff train, enhance staff quality, and simplify scale, improve resources allocation, and exercise the standardizing, low cost...