Empirical Research On The Effects Of Foreign Banks Entry On The Efficiency Of Chinese Commercial Banks

With the openness of China's banking industry continues to expand, the number of foreign banks'operating agencies and assets in China are constantly increasing, and now foreign banks have become an important part of the banking system. Entry of foreign banks on the one hand has brought advanced technology, financial innovations, advanced management concepts and operation models, promoted China's commercial banks efficiency through spillover effects. And on the other hand, foreign banks have absolute advantage in management, asset quality, and human resources, product innovation over Chinese-funded banks; its large-scale entry will bring heavy competition to Chinese-funded banks. Therefore, considering the actual situation in our country, based on financial index analysis of commercial banks in our country, drawing the advanced method of DEA (data envelopment analysis), empirical research 1995-2008 years of foreign bank entry on banking efficiency in the country. The results show that foreign bank entry promote the Chinese commercial banks return on assets, return on equity, non-interest income and raising the level of risk management, commercial bank in China has also increased operating costs in short term, but improve overall efficiency of our business banks Finally, on this basis give the suggestions for Chinese commercial banks to improve operational efficiency, including the optimal ownership structure, optimize business structure, optimizing management methods and enhance risk management lever.