The Analysis Of Cost Efficiencies Of Chinese Commercial Banks

Chinese banks are facing competition from foreign rivals as China implements the deregulation of foreign entry under WTO. Thus, how Chinese commercial banks in such a competitive environment to maintain their advantages in improving risk management, while improving the core competitiveness, reduce costs, make it more efficient input and output is particularly important.And the bank's competitiveness is an important tool to reflect the cost efficiency of bank. The article research the bank cost efficiency of influencing factors improve bank cost efficiency, promote the core competitiveness. The high bank cost efficiency means the same input with high returns. But for now, this is our country commercial bank and foreign Banks in the gap, so the study of the cost efficiency of the bank has profound theoretical and realistic significance.Firstly, the paper drew definitions and classifications of commercial bank cost efficiency concept. Secondly, according to the actual conditions of our country, the paper selects 12 commercial Banks a total of eight years of data, using the corresponding input and output index. The paper establishes empirical analysis model based on the stochastic frontier approach to estimate the cost efficiency. In the sample of banks for each year by the cost-effectiveness data, the author describes the overall situation, and compares state-owned shareholding commercial banks'cost efficiency value with other joint-stock commercial banks' Third, the paper selects to affect our country commercial bank cost efficiency of regression equation of endogenous factors, which established quantitative analysis of various factors, and evaluated the commercial bank cost efficiency value impacts. Finally, based on the paper analysis before commercial bank cost efficiency factors, the paper draws the conclusion of this study, and put forward to the study.One hand, from the angle of micro and macro, the article proposes the way to improve the commercial bank cost efficiency, and gives some suggestions in optimizing the structure of property rights, increasing adequate capital adequacy ratio and improving the quality of commercial bank assets. On the other hand, based on the research of Chinese commercial Banks cost efficiency measure the value, this paper considers the factors of the bad loans. In the measure of the loan amount input-output factors in the bad loans, the paper eliminates the effective commercial bank loans as evaluation basis. From the perspective of positivism, we explains the departure of non-performing loans, the influence of the commercial Banks in China.However, since the author level is limited and the research background is relatively complex, this data acquisition is limited. The paper only choosees the capital adequacy, bank scale, middle business accounted for the proportion of business income and property right structure and asset quality five variables to commercial banks to examine the influence of cost efficiency.