Research On The Effect Of The Opening Extent Of Chinese Banking Industry On The Operational Efficiency Of Commercial Banks

Currently the global economic integration has become a universal trend in the world. As an important component of China's financial industry, the banking industry in China has been increasingly affected by various internal and external factors. It is our obligation to analyze and research on the effect of the opening of banking industry on the operating efficiency of our country's commercial banks. Based on this thought, this paper tries to find out logical relations between these two factors, by combining quantitative and qualitative methodologies.As a beginning, this paper reviews related literatures about the opening of banking industry and banks'operating efficiency. And based on that, this paper can be divided into six parts: The first part introduces theories about the opening of banking industry, and describes histories and current situations of this phenomenon. The second part makes qualitative analysis on the relationship between the opening of banking industry and the operating efficiency of commercial banks, in order to give a basic theoretical support for the coming empirical researches. The third part makes calculations of the degree of the banks'opening level, from both internal and external perspectives. The fourth part selects factors which are able to measure banks'operating efficiency. It chooses the factors in the principle of safety, liquidity, profitability, and growth, together with micro and macro factors which might have influences on the banks'efficiency. The fifth part operates an empirical research on the relationship between the degree of the opening of banking industry, and the operation of commercial banks. It chooses data about seventeen large and medium commercial banks from the year 2003 to 2009, builds panel data model, and respectively researches on factors from the four perspectives. The outcome shows that the opening of banking industry increases commercial banks'safety and growth, decreases liquidity, and has a positive impact on the long-term profitability. The last part gives related suggestions on how to lead the banking industry into a proper and rational opening trend.