Research On Regional Differences And Economic Effects Of Bank Efficiency In Shandong Province

Banking Industry plays an extremely important role in the financial circles. Faced with scarce financial resources, we must improve the bank efficiency positively so that function of bank industry can play the largest value. Nowadays, though competition in the financial circles is becoming increasingly fierce, the importance of bank efficiency are suddenly revealed day by day, which makes bank stand out and is beneficial for the economic growth of the region. The article focuses on regional differences and economic utility of bank efficiency.Being an indispensable part of national economic, how regional banking influences the development of urban economic gradually has become a theoretical circles and in-kind sector of the hotspot, but most surveys are confined to global、 national or regional researches. In this paper, in order to investigate the level of bank efficiency in different regions and, we select the cities of Shandong province as the research objects. Based on this, we further study the impact of bank efficiency on the economic growth of each region and its differences.The bank efficiency that the article studies for refers to the technical efficiency of commercial banks. In the measurement of the efficiency of banks, this paper establishes the super-efficiency DEA model. Compared with technical efficiency of the cities of Shandong province between 2013 and 2014,we can conclude that the top four are Jinan、Binzhou、Heze and Dongying. Meanwhile, Weihai、Weifang、Taian and Jining are ranked in the last, and Zaozhuang、Liaocheng、Linyi、Wuhu、Qingdao and Dezhou are in the middle position. Through the bank trends efficiency analysis of the years, we should adopt different approaches for different cities.This paper uses the panel data model and the time-varying parameter model to analyze the effects of bank efficiency on the economic growth of each region, getting coefficients of bank efficiency through empirical analysis. The results show that 13 cities’ bank efficiency has a significant impact on the economic growth of the region. Qingdao’s bank efficiency has a good development, but it inhibits its own economic growth. This is an urgent problem.On the basis of the conclusions, his paper tries to put forward some policy suggestions for reference that both the provincial government and the prefecture administration should strengthen regulatory framework and system construction to enhance regulatory quality, improve human resources management, and promote the market-based process of interest rate to form a positive interaction between banking and economic development, so as to realize the coordinated development of the whole.