Based On The Panel Data And DEA Method Of The Efficiency Of Chinese Banking Industry Research

To improve the efficiency of Chinese banking industry of current China bankingindustry is a key issue in the sustainable development, but also to meet the challenges offoreign capital bank basic requirement.This paper is based on the relevant bank efficiency theory and the empirical researchin domestic and abroad, combined with the reality of our country. The author then adoptedthe improved factor analysis—data envelopment analysis (DEA) method to measureefficiency score of12banks in our country and the situation of efficiency change in2001-2009. In the panel data analysis, the dependent variable is the efficiency score, andthe independent variables are internal bank business data and external macroeconomic data.Through stationarity test, cointegration test and the determination of panel data, the authorgot the result that:(1) the state-owned commercial banks and joint-stock banks differenceis no longer affect banking efficiency are important factors. And the differences with thelarge state-owned commercial banks gradually reduce the successful restructuring.(2)national economic growth and efficiency and there is a positive correlation between. GDPgrowth in growth, more conducive to the bank efficiency. The banking industry and therapid development of our country economy is currently in rapid growth phase are closelylinked.(3) the cost/income ratio is a major factor in the efficiency of banking. Bothbetween negative correlation, that banking profitability is higher, efficiency level is higheralso. Banking profitability strong, its capital operation fast and flexible, cost control is inplace, it is a reflection of an important indicator of the level of efficiency.(4) loan todeposit ratio and efficiency of negative correlation exists between. Loan to deposit ratio ofexpansion makes more loans to be released, so the loans the increased workload willincrease the bank bad debts, the banks increased risk, reduce the efficiency of bank. Theextensive management to improve the efficiency of reverse role play.According to theresults of empirical analysis, this paper put forward suggestions to improve the efficiencyof China’s banking industry.The innovation point of this article:(1)Innovation of method: because bank data sample size is limited in our country, tosolve the contradiction in traditional data envelope analysis method of comprehensiveindex selection and too much index number, this paper use the factor analysis, the DEAmethod, and makes index selection more objective. (2) Innovation of independent variable selection: because the original data has beenused in calculating efficiency score, when the factor analysis-the DEA method is beingused to computation efficiency of the bank, the panel data model in this paper is differentfrom previous research. The author no longer took into consideration of the original data toanalysis factors affecting efficiency. Therefore, the influence of existence of correlationbetween original data and efficiency is eliminated.