The Empirical Research On The Cost Efficiencies Of Chinese Commercial Banks From 1995 To 2007

Efficiency is a concentrated embodiment of commercial bank's competition. The appraisal research of commercial banks' efficiencies is good for Chinese commercial banks to judge the efficiency level distance from other bank system, is good for Chinese commercial bank embranchments' resource allocation optimizing and efficiency promoting. Additionly, it is beneficial for Chinese bank supervision authority setting the financial regulation, and it is significant for the stability and development of Chinese financial system. So based on the foreign and domestic research of commercial banks' cost efficiency, this paper applies parameter method to appraise Chinese commercial bank's cost efficiency and thoroughly analyses the results, which brings some suggestions.In this paper, author uses Stochastic Frontier Approach(SFA) to appraise Chinese 14 commercial banks' cost efficiency, and empirically analyses the relationship between Chinese commercial banks' cost efficiency and factors influencing bank efficiency. The results show that no matter related to State-owned banks or Joint-equity banks, cost efficiency has been greatly promoted. And when it comes to the performance of cost controlling, the Joint-equity banks perform much better than the State-owned banks. At last, bank's loan quality negatively influences its cost efficiency, particularly when it relates to State-owned banks.