Comparative Study Of China Commercial Banks’ Efficiency

Finance is the core of economy. As the main body of finance industry, commercialbanks play a key role in the financial and economic systems of a country. On the instancethat our country’s financial system takes indirect financing as the main mode, thecommercial banks are playing an important role in the entire financial system. At the sametime, with the entry of foreign banks, how do the domestic commercial banks keep unbeatenin the fierce competition, competitiveness is the core, and efficiency is the concentratedexhibition of competitiveness.This article firstly introduces the relevant research results at home and abroad; makes abrief overview of the basic definition of banking efficiency; compared the measures ofestimating banking efficiency. Secondly, this article uses DEA method to estimate theefficiency and rankings of China’s13representative commercial banks between1999-2008,and analysis the changes of commercial banks’ efficiency in the sample period, andcompared the difference of efficiency between state-owned commercial banks and otherjoint-stock banks. Then, combined with results, analysis the impact of China’s commercialbanks’ efficiency from the macro-and micro-factors and given some advices.