Study Of The Chinese Financial System Efficiency

China has owned a lot of dazzling achievements, in which Finance, as an important element, plays an inevitable role. Researching on financial institution efficiency is very undoubted necessary, because finance gets more and more important, institution as an element explanation about economy is acknowledged and is pay attention to and efficiency is becoming the soul of the whole economy.This paper at first from the view of institution economy makes a definition of financial institutional efficiency. Secondly it talks about universal theory following above logic. Then it researches on the development of our country's efficiency of financial institution and point out shortcomings. Afterwards we collect data from 1985 to 2003 to establish an estimate equation based on the theoretic and practical analyses, and get almost the same conclusion. Finally, we get a further step to point out the inevitability of the development of Chinese financial institution and flawed institutional efficiency.