A Study Of Chinese Commercial Banks’ Efficiency

Efficiency has always been one of the core issues of economics research, and alsoa main goal in the operation and management of commercial banks. Commercial bankis an important component of the financial sector and the efficiency is the concentratedreflection of bank competitiveness. The efficiency not only shows the operatingperformance of the Banks themselves, but also reflects the immanent quality of acountry’s financial development. So the efficiency is directly related to the resourceallocation of whole country’s social economic system, and affects the entire socialeconomic development. After China’s accession to the WTO, the competition betweenthe Chinese banks is increasingly fierce, and the competition will be increasinglyfocused on the comprehensive efficiency of the bank. Facing to such financialenvironment, Chinese bank maintains the sustainable development only by constantlyimprove the competitiveness of the banks. Chinese commercial banks maintain a strongcompetitiveness to adapt to such competitive financial environment only by constantlyimproving the efficiency of banks because the bank competitiveness focuses to the bankefficiency.This article first has carried on the extensive literature search, and compared thecurrent commercial bank efficiency theory and empirical research method, so theefficiency of the commercial bank study in nowadays still has a very importanttheoretical significance and practical significance. This paper introduces the researchbackground in part1and part2. This paper introduces the research methods in part3.This paper carries on the empirical analysis in part4. This summaries andrecommendations of this paper are in part5.The bank efficiency as a important measure of input and output standard, the studyof commercial bank efficiency is always the research hot spot problems. Consideringthe commercial bank business activities exist in the desirable output and the undesirableoutput, this paper analysis the13commercial Banks in2003-2011data based on DEAwindow analysis. Studies have found that loans and net profits as desirable outputvariable, there is high value of efficiency. Non-performing loans as undesirable output,its non-performing loan rate is not necessarily lower although its efficiency values are ahigher. The number of employees as the input variable, not only the numerical value butalso the volatility is large. In addition, relative to the same variable, except the number of employees, the13commercial bank efficiency differing from each other is not toobig.