Research On The Efficiency Of Rural Commercial Bank In China

Speeding up the building of a new socialist countryside, gradually resolving the drawbacks ofthe current urban-rural dual economic structure in China, improving the production and livingstandards of farmers has been the important mission of the party and the country this year. From2004to2012for eight consecutive years, Central Document No.1put the "three rural" issues asthe most important issue, which shows the importance of the current development of the ruraleconomy for China’s socialist construction. The development of economic is inseparable from thefinancial support, but China has not yet formed the perfect rural financial system. A seriousshortage of supply of rural finance gives certain restrictions on the development of the ruraleconomy. Thus vigorously developing rural financial institutions to speed up construction of ruralfinancial system is particularly important. Rural credit cooperatives as an important force for ruralfinancial occupies an important position in rural financial system of China. However, with thecontinuous development of the rural credit cooperatives, its own the cooperative financialproblems becomes more and more prominent, leading to rural credit cooperatives are not able tocomplete the mission of supporting agriculture. Therefore, many scholars began to study thereform of rural credit cooperatives. The idea gradually forms which change the rural creditcooperatives from cooperative financial model to the commercial and financial model. RuralCommercial Bank is the birth of the reform of rural credit cooperatives, which is one of the threemodes rural credit cooperatives reform.The rural commercial banks play an increasingly important role in China’s rural financialsystem since they are built. However, rural commercial banks set up by the rural creditcooperatives reorganization and are established for a short time. Compared to other commercialfinancial institutions, there are different aspects of the structure of property rights, legal nature,internal control and management, financial technology and product innovation, and talentintroduction and cultivation. Therefore, how to make a better development of the rural commercialbanks is particularly important.Firstly, this paper studies the generation process of the commercial banks, the feature of thebanks and the development status.The paper tries to understand the overall situation of ChinaRural Commercial Bank from a macro perspective. Then from the point of view of efficiency,using data envelopment analysis (DEA) method, selected current assets of the largest and longestestablished12furniture typical rural commercial banks in China for the study sample. Data extracted from its financial statements, the model estimates the comprehensive technical efficiency,pure technical efficiency, scale efficiency, IO redundancy and total factor productivity of the ruralcommercial banks from2009to2011.The paper quantitatively analyzes the effectiveness ofcurrent rural commercial bank and the reasons of the inefficiency. Combined with the researchresults in the past, the paper qualitatively sum the affecting factors of the operating efficiency ofthe rural commercial banks in China, and finally put forward the suggestions to improve theoperating efficiency of the rural commercial banks in China.