Study Based On The Factors Listed Bank Efficiency And The SFA

Level of development of the banking sector for a country’s financial stability and security is essential and directly affect the efficiency of the banking sector to the level of utilization of financial resources and social resources of the entire configuration results.Foreign country have already studied the efficiency of the bank for decades in promoting the development of the national banking sector and find it keeps playing an important role.Although the situation has undergone a series of financial crises, but some banks abroad reflects the bank’s risk-resisting ability bank efficiency indeed rising.By the end of2006, foreign banks began to have full access to China’s financial markets, this may have an great influence not only on China’s banking industry to improve its efficiency in this competition but also on the development of China’s banking industry.This paper select16listed banks in our country which could reflect the most part of China’s listed bank.To improve the efficiency of China’s listed banks may have an great influnce on the development of the entire national economy.After describing the theory and methods related to bank efficiency,we analysis the current situation of China’s banking sector efficiency, then we study the influence in micro meso and macro three aspects.On this basis,according to the microscopic aspects influencing factors,we select many variable index such asasset quality stability liquidity of assets and bank size.From the perspective of input-output, we select the16listed banks in2006-2012as the sample data, and we use SFA methods and the static and dynamic analysis of changes in our cost efficiency and profit efficiency of banks listed investigate.Finally, on the basis of qualitative and quantitative analysis, reasonable policy proposals for China’s listed commercial banks on how to improve the efficiency will be given.The results of previous studies and empirical studies are different from former studies which say cost efficiency and profit efficiency of development of China’s16listed banks are relatively stable and state-owned banks cost efficiency and profit efficiencyis a little better than the other joint-stock banks.However, from2006to2012, the cost efficiency of the four lines has been the level of development in the wandering0.95.But the volatile stock banks, from2006to2012,are between0.82and0.95.This shows a good trend of China’s joint-stock banks to improve the cost-efficiency. In terms of profit efficiency, the efficiency of which16 banks averages above0.9, but the profit efficiency of the four lines have a stronger ability to resist risks, thanks to the size of the foundation of the four rows.In the stochastic frontier model estimates obtained, we also see indicators listed banks asset stability liquidity and banks are showing a positive correlation between efficiency, while the NPL ratio has inhibitory effects on the efficiency of the bank.