An Empirical Study On Supervisory Efficiency Of Commercial Banks In China

On account of the outburst of the financial crisis in2008, the debt crisis of Europe in2010and the constant revision of Basel Agreement, the core issue of banking supervision—regulatoryefficiency has come into people’s focus. This paper abandons traditional cost-benefit analysis ofregulatory, and adopts the method of completion of regulatory objectives to research intosupervisory efficiency of commercial banks in China. After the overview of the efficiency ofbank supervision, it establishes a sound regulatory target system and a evaluation index systemof commercial bank regulatory efficiency. Under different regulatory target systems, this essayemploys the factor analysis of multivariate statistics to undertake research on the regulatoryefficiency of12commercial banks from2005to2010.The empirical result manifests that:1) under different target systems, regulatory efficiencyof commercial banks in China has present different developing trends. When the goals ofstability and efficiency are considered, the regulatory efficiency of commercial banks in Chinahas been steadily rising; when the targets of stability, efficiency and development are considered,the regulatory efficiency shows up and down.2) In the factors of influencing the regulatoryefficiency of commercial banks in China, stability factor accounts for47.34%; efficiency factortakes up38.24%; development factor has the proportion of14.42%.3) In the period of study, theregulatory efficiency of commercial banks in China had an unstable rising trend, and it appeareda declining trend between2008and2009. Relating to the practical situation, this paper illustratesthe empirical result and proposes some policies. To the regulatory authorities, this paperproposes that: first, the authorities should absorb the successful practices of banking supervisionrecently, introduce the advanced ideas and methods of the world; second, the authorities shouldoptimize the regulatory target system and index system of commercial bank regulatory efficiencygradually; third, to improve the forward-looking and operability of banking supervision in China.To the banks and market constraints, this paper proposes: first, to improve the internal controlsystem of banks; second, to improve the fair competition mechanism between the banks; third, togreater efforts to regulatory innovation when the banks increase new financial products; forth, toimprove the normative degree of banking information disclosure.