The Study Of Commercial Bank's Efficiency Of China Based On Sfa

In 2001, after China's joining the world trade Organization, China's financial market had been gradual opening. Economic environments changed gradually, and foreign banks entered the Chinese market. Finance is the core of the national economy, and the bank is the core of the finance, especially in China, the bank plays a decisive role in the whole economic development. Facing environmental change, the competition among local Chinese commercial banks has extended to the multinational banks. China's banking industry faces unprecedented opportunities for the challenge. The survival and development of commercial Banks in China depend on its own improvement of the international competitiveness. Efficiency is one of the core issues which economics deals with, and reflects the competitiveness. The improvement of the bank efficiency is the foundation to prevent financial risks, and promotes the sustainable development of the banking industry. Therefore, it is necessary to be clear of the efficiency of Chinese commercial Banks at the whole situation, and analyses the main factors which influence the efficiency of Chinese commercial Banks.The main research contents can be divided into three parts:the first is based on Cobb-Douglas production, measuring the boundary of the overall technical efficiency of commercial banks, this part of the research process only focus on technical efficiency, not including the influence factors of technical efficiency; the second fart is based on the Translog Cost Function, measuring the boundary of the overall cost of commercial Banks, and also analyzing the main factors which impact the cost efficiency of commercial banks. Main factors include service level, the bank risk, capital scale, market concentration, banks' loan-to-deposit ratio, excluding Macro economic factors.Finally through comprehensive comparison of technical efficiency and cost efficiency of commercial bank, it concludes that the technical efficiencies of banking are constantly increasing, from the overall trend, and this trend will continue. And cost efficiency does not increase, and it is swinging around of 0.78, and no obvious ascending, but sometimes it is even descending. This demonstrates that commercial Banks cost efficiency is low, and Cost Control is still weak, so cost efficiency has a very big space to be improved, etc.