Analysis Of Learning Effects In China Commercial Banks

Learning effect, also called the learning curve or experience curve refers to the decrease of long-term average cost in the production process, due to the accumulation of knowledge and experience increase. Learning effect is currently mainly used in productive enterprises and plays an significant role in costs reduction, management efficiency and forcast. However,due to the measurability of production and cost, learning effect in other industries, such as service industry, is not concerned in the learning effect research yet. Banking industry,as a typical service industry,its learning effect is also unknown. As the most important component in China's current financial system, commercial banks's efficiency and international competitiveness concerns the whole social economy system in China.After joining the WTO,barriers and restriction will be cancelled step by step in the financial industry,which leads to the fiercer competition between China's local banks and foreign banks.Besides,decrease in the quality of assets,deficit of investments and lost of loans and deposit caused by financial crisis in 2008,attacked China's financial industry badly. In a word,it is a must to boost competitiveness of local banks.As a result ,it's a must to boost local banks'competitiveness.This thesis focus on the analysis of China's commercial banks'efficiency and competitiveness based on the learning effect.The article firstly defines the definition of learning curve and distinguishes learning effect from scale efficiency and range efficiency and introduce econometric models to evaluate learning effect.Then commercial banks'learning efficiency is introduced.Based on the definitions above, this thesis uses data from China's state-owned banks and banks and choose a suitable model to analyze the learning efficiency. The empirical analysis proves the existence of learning efficiency in China's commercial banks.The article analyze the learning effect of single bank,and reach a result that :learning effect exist in some banks but not all the banks.Based on the results,this article introduce learning curve of China's commercial bank and point out position of every bank,then uses DEA to calculate its management efficiency in order to find the correlation between them.The empirical analysis shows that there is no correlation between state-owed banks'learning effect and management efficiency;however,there is obvious correlation in the joint-equity commercial banks bank. The factors that impact commercial banks'learning effect are analyzed both theoretically and empirically and the factors that impact China's commercial banks'learning effect are located as a result.According to the previous empirical analysis,a series of effective encourage and cost-control mechanism are introduced,which focus on human capital,techonology and management.Through using these mechanism,China's commercial banks could improve its efficency,lower management cost,promote learning effect and boost international competitiveness by inner innovation,cutting down staff scale,improving and management services.