An Efficiency Study Of Chinese Commercial Bank On The DEA

The financial industry is the core of modern economics, having extensiveinfluence on all aspects in economic and social activities. Development of financialindustry plays an important role in transforming the economic development mode andestablishing a harmonious society. As the main body of the financial industry, bankshave an operation efficiency that is not only related to health development of thefinancial industry itself, but also shows important influence on the whole nationaleconomics. With progressively deepening financial reform and gradually openfinancial market in China, the financial market shows increasingly fiercecompetition，according to China’s WTO accession commitments，Joined five yearslater, foreign banks will enjoy "national treatment"，which allows domestic banks todirectly face strong competitive pressure of foreign banks, How to improve thecompetitive ability, is the reality of the domestic Banks. Because the basis and corecompetitiveness is operating efficiency, it is necessary to provide in-depth comparativestudy for China’s commercial banks in respect to operation efficiency, throughestablish a proper mathematic model measure the efficiency level of banks, profoundunderstanding its present situation and history and then discusses the main factorsaffecting the efficiency of the insufficient found for advantage, offering decision-making basis to bank managers and macroeconomic control authorities.This paper first described the historical development of China’s bankingindustry，reviewed research on bank efficiency at home and abroad, then combinedwith the background described in this article expound the basic meaning and measureof bank efficiency, described in detail the current academic popular efficiencymeasure-Data Envelopment Analysis, then selected4state-owned commercial banksand10shareholding commercial banks in China as the object of study, used DEAmethod to measure the efficiency of the situation of these banks from2006to2009.Through the comparison of these efficiency values found: The level of pure technicalefficiency of state-owned commercial banks is better than the joint-stock banks, but the poor performance of the scale of efficiency. In order to study the dynamicefficiency of bank during the review period, the paper also introduced MalmquistIndex to measure the efficiency of the dynamic changes and get some meaningfulconclusions.Finally, in order to deeply understand the main factors affecting bankingefficiency, this paper on the basis of theoretical analysis selected five main factors-capital adequacy, operation cost rate, business innovation, market concentration ratioand ownership structure, constructed Tobit regression model, through the Panel dataregression for quantitative measurement of these factors affect the direction and extentof bank efficiency, put forward some targeted advice and recommendations on thisbasis, which provide reference for bank efficiency promotion.