Efficiency Study Of Chinese Commercial Banks Based On DEA

Commercial banks are the main body of China’s financial industry,is the most popular financial intermediary to the public,playing a decisive role in promoting economic growth,increasing financial revenue,promoting employment and protecting the people’s livelihood.Since the 20 th century,influenced by the popularization of information and financial integration,performance evaluation,management concepts,risk control,sense of service and internal corporate governance structure of the global banking industry have undergone tremendous changes.On one hand,due to institutional and technological innovation and continuous reform,whether developed or developing countries,the emergence of banking mergers and acquisitions boomed,countries bankers are hoping to reduce business risk of commercial banks through the expansion of business scale and improve operational efficiency;on the other hand,affected by the financial crisis,the macroeconomic environment is not optimistic,making the development of the banking sector more difficult.Such changes in the macroeconomic environment not only provide better conditions and background for business development,product improvement,financial innovation and operational technical methods creation,but also bring a more complex business environment for commercial banks to survive and develop,increasing operating risk of banking environment.In conclusion,we can say that efficiency of commercial banks has been a hot issue for governments,bankers and scholars.In China,due to the impact of the planned economy,the commercial bank has always been lack of independence.Operation,management and business objectives are all interved by government,what’s more,maximize profit and shareholder’s benefit is not the objective to China’s commercial banks,lacking realistic basis for study of efficiency of commercial banks.Since economic reform,the Chinese government is gradually reforming commercial banks,guiding commercial banks transition,and gradually formed a mainly state-owned commercial banks,joint-stock commercial banks and other urban commercial banks,supplemented by other financial institutions coexist financial system.With the gradual establishment of mechanisms for continuous improvement and competitive market economy,China’s commercial banks pay more attention to the effectiveness of bank and,therefore,the efficiency of commercial banks has become the focus of research scholars.Most of the commercial banks are subject to government intervention,accumulated a higher non-performing assets and bad debt,the efficiency is generally not high;blindly pursuit profit while ignore risk control;compared to foreign commercial banks,commercial banks in China have obvious gaps in aspects of the business philosophy,management,financial innovation,service and information system.To get the efficiency of commercial banks improved,we should based on the actual development of China’s commercial banks and learn from the experience of developed countries’ commercial banks,promoting asset quality,capital adequacy ratio,operating efficiency and corporate governance.Chinese commercial banks should accelerate mechanism reform,establish market-oriented government’s macro-control mechanism,promote banking mixed development,improve the corporate governance structure,improve financial innovation,sound risk management system,enhance marketing capacity,optimize the allocation of human resources and improve aspects of IT development to continuously improve the efficiency of Chinese commercial banks.