On The Operational Efficiency Of China’s Rural Commercial Banks

China is the largest developing country in the world, with a population of1.3billion, and of which about800million live in rural areas. To solve the problems of farmers, agriculture and rural correctly, and make farmers’income increase, agricultural growth and rural development, is the premise of China’s stability and prosperity. Recently, China has paid more attention to the solution of "Farmers, Agricultural, Rural" problem, referring to which the Chinese Government has been eager to push the relative policy. Along with strong support from law enforcement and policy implement, the rural financial market has become a much more fierce battle field for the national commercial bank, the listed commercial bank, corporate banks and other banks that want to share a piece of cake from this market, which promotes China’s rural financial market increasingly competitive.How would the rural commercial bank, as the leader in rural financial market, survive through this large wave of competition by expanding and realize maximum profit while sticking to the policy restriction is a thought-needed issue and requires the digging. Though the rural commercial bank has developed speedily, its corporate governance, informational publication, entrepreneurial culture and long-term strategy still need further reformation and adjustment. That makes an obstacle for academic research and leads to an immature study in this area.Therefore, combined with the character of rural commercial banks, this paper commit the real-evidence analyze by the means of financial analyze and DEA, which would be conducted on18rural commercial banks. Chapter one introduce the background, purpose, research methods, innovation and weakness of this paper. The status-quo of rural commercial banks is depicted in chapter two, following which chapter three presents the relative theory. Chapter four illustrates the preparation work for the real-evidence analyzes and chapter five conducts the real-evidence analyze. This chapter selects18rural commercial banks as research bank and firstly conducts descriptive analyze from four aspects of safety, liquidity, profitability and sustainability. And then OE, PTE and SE are measured by CCR and BCC model in DEA to pick out the effective rural commercial banks. The last chapter aims at the conclusion of the paper and come up with some relative suggestions.Firstly, this paper evaluates the efficiency on four dimensions of security, liquidity, profitability and sustainable development capacity. Found that the rural commercial banks have improved their operational efficiency in the competition. They not only adhere to the traditional businesses, but also develop new financial services, reorganize assets by the joint-stock reform, and increase investment, get new technology and management resources to make sure that they are competitive enough. Which, Jiangyin, Ningxiahuanghe commercial bank maintained at a good level. Feixi, YangzhouJiangdu are relatively worst. From the analysis of DEA,3rural commercial banks of Jiangyin, Ningxiahuanghe and Beijing maintain the relatively optimal operating combination. From2010to2011, OE has been better, and PTE maintains at high level. So the change of OE mainly due to SE.The main contribution of this paper is that the author spent more on data collection of18rural commercial banks. And use financial analysis and DEA method to make a more in-depth and comprehensive study on the efficiency. However, due to the difficulty of obtaining the data, and the inconsistent statistical standards, I only select data from2010to2011, which makes it hard to react the longitudinal trend of efficiency. Because of the limited experience and knowledge, I do not use more methods to do the research, In addition, due to the various indicators specific price information is hard to obtain, the paper can’t analyze the cost efficiency but only measure the operational efficiency of the rural commercial banks, In the future studies, I wish it is possible to collect more comprehensive data, and use a variety of methods to get objectively comprehensive evaluation.