Research On The Efficiency Of National Joint-stock Commercial Bank Of China

Fist of all,many relevant literature are reviewed and compared to introduce the theme which is the X efficiency of commercial banks of China.Then the X-efficiency is introduced thoroughly and the pros and cons of the two methods of studying the X efficiency are compared.Sebquently, SFA(stochastic frontier approach) and the frontier4.1 are adopted to do the empirical analysis on 12 national joint-stock commercial banks(the nature of bank is decided in 2005) in China in the years 1998-2005.In the empirical analysis,fistly all the X efficiencies of 12 national joint-stock commercial banks from the year 1998 to 2005 are measured .Then the NPL ratio is induced to the mdel and all the X efficiencies from the year 2001 to 2005 are measured.After that, the differences of the X efficiencies of the two groups are compared. There are three main conclusions.Firstly the X efficiencies of all the banks have rised with or without introducing the NPL ratio.Second,the X efficiencies of all the banks have dropped after introducing the NPL ratio,but the X efficiencies of the three joint-stock commercial banks have dropped more than the others.Besides,the average X efficiencies of the others are higher than the three banks.With eviews6.0, the muple regression analysis are done on the data of the 12 banks introducing the NPL ratio to measuring the four influencing fators.It concludes that the structure of proper rights and quality of staff are posive correlations,equity capital/total assets and interest revenue/total revenue are nagitive correlations.In the end, four suggestions are proposed to improve the X efficiencies of the national joint-stock commercial banks.First,continue to promote diversification of the structure of property rights.Second,strengthen the banks'risk management mechanism.Third,develop the intermediate business vigorously.At last,change the traditional main source of profit and strengthen the human resource management.