The Research On Bank Efficiency And Influencing Factors Of City Commercial Banks In China

With the acceleration of the process of promoting market interest rates,a pattern of full liberalization and international integration of Chinese banking financial is gradually forming. Chinese financial market has entered a new phase of intense competition from the past monopoly,and competition among banks has become the competition of improving management,service quality innovative financial products and the efficiency.Among them, the efficiency is the most concentrated expression of the bank’s competitiveness. Since 2003, through consolidation and reorganization, cross-regional business, the introduction of strategic investors and listed assets,city commercial banks in China has achieved a breakthrough in their own development and has become an important force in banking to be reckoned with. However, due to the heavy historical burden of,lack of management experience and the relatively small size of assets, city commercial banks is still less than other commercial banks in the overall strength. How to face the intense market competition and improve efficiency and service levels become priority to the development of city commercial banks in China.From the related concepts and theories of city commercial banks efficiency and influencing factors, based on a combination of theoretical and empirical methods,this paper first selects financial data on representative of 36 city commercial banks between 2009-2013 to conduct an efficient and dynamic evolution research,then calculate technical efficiency and its decomposition efficiency by DEA. And analysis the main factors that affect the efficiency of city commercial banks through the panel data model, such as size, asset allocation, stability and profitability, then build a power model of enhancing efficiency of the city commercial banks to explain the operating mechanism to enhance efficiency of city commercial banks. Finally, put forward some countermeasures and suggestions to enhance the overall competitiveness of the city commercial banks in China,such as optimizing structure, and improving efficiency of scale; risk controls, and promoting sound management; business innovation, and enhancing profitability; comprehensive management, and improving management efficiency.