Research On Bank Inside Efficiency Appraise And Optimization Management Of Commercial Bank In Shandong Province

With the rapid development of economy, banking industry of China has improved significantly in recent years. Commercial banks achieve great performance with rapid development in recent decades. Commercial banks in Shandong Province have achieved rapid development in overall scale of operation in recent years. At the end of 2014, the total assets of them reached 8.6 trillion, and the increase rate was 9.58%. With further opening of capital market, a large number of foreign banks enter into market of China, which leads to more competitiveness in banking industry. As an emerging part of financial market, commercial banks have to improve the efficiency., and only in this way can be winner in the fierce competition.This paper, with DEA analysis, calculates the efficiency value of commercial banks in Shandong province. With qualitative analysis and quantitative analysis, this paper gets the overall technical efficiency, pure technical efficiency and scale efficiency of commercial banks in Shandong Province. Then it does empirical research of influence factors of commercial banks’ efficiency in Shandong Province with Tobit model. Finally, it puts forward the recommendations of how to improve commercial banks’efficiency.The empirical research of commercial banks’ efficiency in Shandong Province is the main body of this paper. In the first stage, based on actual development of commercial banks, this paper calculates the overall technical efficiency with DEA method of 12 banks in Shandong Province. Then, it selects assets, administration expense, and deposit as input variables, and selects net margin as output variable. With the result of overall technical efficiency, pure technical efficiency and scale efficiency, this paper finds that the overall technical efficiency of commercial banks in Shandong Province is higher than the four major state-owned commercial banks and stock-holding banks of China, but the difference is smaller. With analysis between commercial banks in other regions, such as east region, central region, and western region, the paper finds that commercial banks in Shandong Province have a higher efficiency value than some regions. In the second stage, it does empirical research of influence factors of commercial banks’ efficiency in Shandong province. The empirical result shows that asset size, non-performing loan ratio, innovation, ownership structure, capital adequacy ratio is main factors of commercial banks’ efficiency in Shandong province.