The Empirical Research Of Chinese City Commercial Banks’Efficiency

With the development of the Chinese economy and the market interest rates gradually liberalized, China Banking has been greatly improved. city commercial banks as a rising star in China’s banking sector, after ten years of development, achieved good results. Until the end of2011, there are a total of114city commercial banks in China. Total assets are9.98trillion,total deposits are7trillion and total loans are4trillion. Chinese city commercial banks is the objective product of China’s economic and financial development.This paper, the city commercial banks in Shandong Province as the research object To study the efficiency of city commercial banks in Shandong Province. Shandong Province as a major economic province, in recent years, the development of the city commercial banks are very quickly. Up to the end of2011, there are a total of14city commercial banks in Shandong that has the largest number of city commercial bank. City commercial banks in Shandong have total assets of457.792billion Yuan, deposits373.665billion Yuan and the loan256.522billion Yuan, but the city commercial banks in Shandong Province there are still lots of problems to solve. Therefore, studying the efficiency of city commercial banks in Shandong Province and identifying the problems of the city commercial banks are of great significance to further promote the development of city commercial banks in Shandong Province.This paper, make best use of nonparametric DEA analysis method to research the efficiency of city commercial banks in Shandong province, While using a combination of qualitative and quantitative analysis. Making use of the DEAP software to obtain the DEA of14city commercial banks.DEA include the overall technical efficiency, pure technical efficiency and scale efficiency values. Then do empirical research and analysis influencing factors on the efficiency of city commercial banks in Shandong Province, and finally put forward the policies and recommendations of how to improve the city commercial banks in Shandong Province.First, we selected four representative Shandong Province city commercial banks, four state-owned banks and four joint-stock banks to do a comparative analysis. Then, based on the size of the bank, from the eastern region, the central region, the western region respectively elected the four city commercial banks to do comparative analysis with the city commercial banks to explain the location of the level of efficiency of city commercial banks of Shandong Province in the city commercial banks. Secondly, by use of stata software make the tobit regression empirical analysis to find the factors that influence the efficiency of Shandong Province. The empirical results do the analysis shows that the asset size, the non-performing loan ratio, innovation, ownership structure, capital adequacy ratio are main factors of city commercial banks in Shandong Province. Finally, according to above factors, propose the suggestions that improve the efficiency of city commercial bank in Shandong province.