Study On The Measurement And Optimization Of Bank Efficiency In Henan Province

In recent years, with continued rapid growth, the banking promotes national economy’s healthy development in Henan province. Because of the current domestic economic policy and bank regulation’s large adjustment, the transformation of economic structure, the capital adequacy constraints and the rising openness degree and so on, bring a lot of pressures to the banking business development in Henan province, and many indices appear large fluctuation. Banking is faced with various risks in Henan province, and also puts forward higher requirements on bank operating efficiency. Firstly, this paper describes banking’s amount, structure and its change trend in Henan province, and then establishes extensive super efficiency SBM-DEA model to measure regional banking technical efficiency in Henan province from2010to2011year from the perspective of regional finance and the introduction of risk measurement index. Finally, this paper establishes Tobit model to analyze the influence factors of technical efficiency.The main conclusions are:(1) banking overall technical efficiency level in Henan province is relatively low. The pure technical efficiency is relatively low, and the scale efficiency remains relatively high level, so the pure technical efficiency becomes the key way to improve the overall technical efficiency.(2) The technical efficiencies in Henan province banking take on spatial diversity and agglomeration characteristics, and the banking’s technical efficiencies in north central districts are higher than them in west and south districts. Rural banking institutions do not to keep in touch with the advanced bank smoothly, and lack the opportunities how to update and improve technology and business management knowledge generally, which lead to bank efficiency becoming low.(3) there is close relationship between the banking technical efficiency and the local economic development level which influences on and promote each other, and the technical efficiency and the local urbanization degree, the marketization degree also keep close relationships. In general, it is difficult for improving the local economic development level and quickly achieving high urbanization and marketization degree in the short term.The policy suggestions are:(1) Under the current economic transformation and the risk management environment, most banks are not suitable to continue to take expansion strategy. Banks should translate extensive development to connotative development to improve the technical efficiency.(2) It is necessary to actively create conditions to strengthen regional technique exchange and cooperation and dredge the regional bank’s management and technology transmission channel.(3) Currently, under undertaking industry strategic shift environment in Henan province, banks should review their own basic condition, measure their own long-term and short-term development potential and defect objectively, adjust the various resources moderately, optimize the credit structure.(4) Banks should implement dynamic monitoring and continuous supervision measures for high-risk industry, prevent and control credit risk of local government financing platform and real estate enterprise.