Comparative Analysis Of The Efficiency Of Large State-owned Commercial Banks And Joint-stock Commercial Banks

Efficiency of banks has been a hot issue in the field of financial research. Commercial banks are the most important part of the national economy, which plays a significant role in the healthy development of the national economy and the country's international competitiveness. In 2007, the international financial crisis Occurred, which was triggered by the U.S. subprime mortgage crisis, and China's economy is also subjected to a certain extent in this economic crisis, How did China's commercial banks perform under different conditions? What is different between large state-owned commercial banks and joint-stock commercial banks in the expansion and downturn phase of the economy? These issues are concerned in the content of this article.This paper has six chapters. In the first chapter, we discuss the background and review the progress of the subprime mortgage crisis and the performance of the foreign and domestic banks in the crisis. Then we propose the idea and innovation of the article. In chapterⅡwe review the domestic and international literature on bank efficiency research. The third chapter describes the definition of efficiency, defines the concept to the efficiency of bank, analyzes the meaning and content of banking efficiency, and describes the determination methods of the efficiency. In the fourth chapter, we use DEA method to analyze the static efficiency of the 11 Commercial Bank of China from 2004 to 2009. In the fifth chapter we use Malmquist index to analyze the dynamic efficiency of the 11 commercial banks. In chapterⅥ, on the basis of the evidence, we discuss how to improve the efficiency of the domestic banks.The innovation of this article:we use DEA model to calculate the technical efficiency, purely technical efficiency and scale efficiency of 11 commercial banks according to latest data at the actual situation. Meanwhile, we introduce Malmquist index to analyze dynamic efficiency of the sample banks.The main conclusions:In general, the efficiency of joint-stock commercial banks grows greater than the large state-owned commercial banks. Large state-owned commercial banks and joint-stock commercial banks basically have the same trend of the efficiency change, but the former fluctuations greater than the latter. In 2004-2005, joint-stock commercial banks progress on technology, and large state-owned commercial banks are lack of technological innovation; In the period 2006-2009, the state-owned large commercial banks and joint-stock commercial banks have essentially the same trend on technology. Joint-stock banks generally are stronger than the large state-owned commercial banks on technological progress.