| Efficiency is a concentrated embodiment of commercial bank's competition. If the economic system can be regarded as a currency of blood flow, then the bank, which runs the currency-oriented operation, is the hub of blood conversion and filtering devices. From the angle of the factor resource allocating,economic structure optimizing, macro-economic controlling and the people's livelihood maintaining, commercial bank, as the financial main body, plays an important role in the operation of national economy. Since 1978,the direction of socialism market-economy system has been set, while, as a result, each section of national economic system gradually has been activated and increasing problems and costs has been pooled in the bank system, which requires the speed-up of China's banking reform. Therefore, Ensuring financial security and improving its operating efficiency are becoming the most important task of all.In 2001, the accession to the WTO accelerates the process of opening up in the financial field. Facing the challenges and impacts from foreign banks, how to effectively improve the market competitiveness of China's commercial banking sector is becoming a fully-fledged reality. Compared to the size and development speed of banks, operating efficiency is only some superficial aspects. So the realities of China's economic situation require us to shift the focus of the research and theory to explain the efficiency-center problem. The appraisal research of commercial banks'efficiencies is good for setting the financial regulation for the Chinese bank supervision authority, is good for Chinese commercial banks to judge the efficiency level distance from other bank system and promote their own efficiency level, is good for Chinese commercial bank embranchments'resource allocation optimizing and efficiency promoting, at last it is significant for the stability and development of Chinese financial system. Then, what should we do to understand and measure the efficiency of banks? How could we evaluate the reform and restructure of China's banks in the past few decades? What kind of results the banking system have been achieved about the operating efficiency through these activities? What influence the effectiveness of China's banking sector through the years of the reform process? What also needs changing as the focus of the future? This paper will seek to theoretical and empirical discussions and answers concerning these questions.In this paper, we use the method of Stochastic Frontier Analysis to analize the technical efficiency of our eight listed joint-stock commercial banks in 1998-2006, and we use the Translog Cost Function which is more flexible in the construction of production function, the main research results are as follows:(1) We put forward the bank efficiency appraisal method considering the loan quality. The paper considers the nonperforming loan's influence on the loan's output efficiency. The existing researches use the total loan including the nonperforming loan as bank's output efficiency, thus if other condition unchanged, the more the nonperforming loans are, the higher banks'efficiencies we will get. The paper considers the nonperforming loan's influence on the loan output efficiency in the appraisal of Chinese commercial bank's cost and technical efficiency, selects the nonperforming loan from the total loan to use the effective loan output appraising banks' efficiencies, comparing with the real output loans which include nonperforming loan, demonstrates the real technical efficiency of commercial banks and solves the problem of reasonable appraisal of technical efficiency of commercial banks.(2) China's commercial banking sector ownership characteristics differentiate their efficiency, from the viewpoint of creating profit or cost control ability, the efficiency of joint-stock commercial banks during the sample period is better than the average of state-owned commercial banks, which also proved that the reform to China banking ownership remains positive significance. |
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