Analysis Of The Impact Of Ownership Structure On The Chinese Commercial Banks’ Efficiency

Commercial banks play an important role in financial markets, and provide a strong impetus for the steady development of China’s economy. The continuous development of China’s financial reform and the increasing openness of the financial markets brings opportunities and challenges to China’s banking industry. How to improve the efficiency of China’s commercial banks is a top priority. The efficiency of State-owned banks has increased after the reform of property right, but there are still "a sense of dominance" of the situation, further reform of property rights issues need to be addressed urgently. On the influence of ownership structure on the efficiency of Chinese commercial banks issue, academic controversy, appeared on different points of view, the structure of property rights theory, market structure theory, beyond property-right theory and so on. Some scholars believe that there is a complementary relationship between property-right structure and market structure, in a context of progressive liberalization of market structure, further reform of the property right structure is necessary.Firstly, this paper makes a qualitative analysis and described property theory and detailed analysis property structure on commercial banks efficiency effects of conduction mechanism, overview our bank industry’s development status, we can find that property structure is mainly through Bank of company governance mechanism aspects on principal-agent mechanism, impersonal ownership, decision-making systems and employee motivation effects commercial banks efficiency. After Joint-Stock Corporate System Reform, State-owned Bank established the modern enterprise managing structure. Because of State-owned shares remains relatively high ratio, their mechanism of corporate governance is similar in the shape, State-owned banks exist many problems in the corporate governance, a long principle-agent chain, impersonal ownership, smack of executive decision-making, lack of effective incentive mechanism, which will inevitably affect the overall efficiency of commercial banks in China.Secondly, this paper makes quantitative analysis through DEA-BBC models of18banks②in China for2007-2012, according to banking types, the18banks can be divided into three types of State-owned commercial banks, joint-stock commercial banks and city commercial banks.For efficiency measurement, analysis showed that China’s State-owned banks’total efficiency higher than joint-stock commercial banks and city commercial banks in2007-2012, so we can see the efficiency of State-owned banks after the stock system reform are much improved, but its growth rate is slowing as time increases in2012, joint-stock commercial banks and city commercial banks are higher than State-owned banks. So we assume ownership structure on the efficiency of commercial banks is obvious. Lastly, using Stata10.1software, my paper make an analysis on our18banks of six years panel data, Bank efficiency value for explained variable, assets scale, capital sufficient rate, and dial prepared coverage for control variable, property structure can be divided into two aspects,property type and property concentrated degrees, with State shares proportion, and foreign shares proportion and other within funding proportion said property type, first big shareholders proportion and top5shareholders proportion said property concentrated degrees, respectively for return analysis, get that assets scale, Capital adequacy ratio, provisioning coverage ratio and relationship of Bank efficiency were positively correlated, and extremely notable, but proportion of foreign capital and other domestic proportions have no significant effect on the efficiency of the Bank, and this is possibly because that the degree of participation of foreign ownership is limited at present stage in introduction of funds, rather than the introduction of the advanced management experience and technology and private capital are not standardized. Therefore, my paper proposes some appropriate policies proposals, including a modest reduction of State-owned shares, a clear legal status of Huijin company, perfecting the introducing mechanism for overseas investors, allowing foreign investors to participate in governance, introducing advanced management experience and technology, the specification for private capital, increasing the proportion of institutional investors and the perfection of relevant matching measures, and so on. We need to constantly improve the development environment of Chinese financial market and promote the healthy development of Chinese banking industry step by step in the reform.