Research On The Efficiency Of Commerical Banks And Decisive Factor In China

Effciency is one of the core problems in the research field of the economics.It is also the goal that commercial banks chase in their business administration.The effciency of banking is not only the individual bank's performance but also the sign of its competence.The banking development depends on the efficiency in the long run.With the completely opening of the fiance industry after entrying the WTO,Chinese banking will be confronted with more fierce conpetitions.So it is meaningful both in the theory and practice to make some research on the effciency of the Chinese banking.After the review of some related researches on foreign and native bank efficiency,the paper inteprets the basic meaning of the bank efficiency and the approaches applied in the researches,the single-factor index anlysis and the frontier anlysis .Then the paper make comprehensive and concrete analysis on the bank efficiency of the Chinese commercial banks by the approaches.Firstly,the paper make the international comparative analysis on the bank efficiency between Chinese and foreign commercial banks. The comprasion is conducted from three aspects,the profit ability, cost control ability and the property disposition ability.The conslusion shows that the overall effciency level of our commercial banks is low compared with the commercial banks of the developed countries.Secondly, Data Envelopment Analysis is adopted to estimate the bank efficiency of the Chinese commercial banks.The paper estimates the technical efficiency of each bank in 2000-2004,while the labor,net fixed asset and business expanse as inputs ,total loan,total deposit and profit are specified as outputs.The estimation results shows that the efficiency of the whole banking increases gradually and fluctuates at the same time.The efficiency of state-owned banks is lower than that of shareholder-owned banks,but the efficiency of state-owned banks improves greatly after joint stock system transformation,which is in coordination with the above anlysis on the finace indexes.The paper makes the further anlysis on the decisive factor to the bank efficiency of the Chinese commercial banks.The theoretical analysis summaries three viewpoints,including the market structure theory,the property-right structure theory and the super-property-right throry.The diagnosis research on the decisive factor is conducted in multivariate regression model,while the DEA technical efficiency are referred an dependent variable,market structure and property-right structure as the main independent variable.The anlysis conclusion indicates that property-right structure has positive correlation with bank efficiency,while the correlation between market structure and the bank efficiency can not pass the statistical test.So the paper concludes that the unreasonability of property-right structure is the most imporant factor leading to the low efficiency of Chinese banking.Based on the above results,some suggestions are made to improve the bank efficiency of Chinese banking.The core is property-right reformation.The essential...