Reasearch On The Efficiency Of City Commercial Banks In Western Ethnic Areas

As an important component of China’s financial system, City commercial bank is on behalf of domestic banking industry’s small and medium forces in China’s economic and social development in particular plays an indispensable role in the local economic development. Western ethnic areas both in geographical location, area, distribution of resources and ethnic composition have their own uniqueness. In recent years, although the ethnic area of Western China city commercial bank’s scale has been expanded, market share is climbing, but relative to the economically developed eastern regions, both in operation and management, asset scale and there is a big gap in ability to withstand risks.There is of growing important to study the efficiency of city commercial banks in western ethnic areas. Combining the qualitative analysis and quantitative analysis, using Western ethnic areas city commercial banks financial data and literature information, this paper measures and analyzes the western ethnic area city commercial banks’ efficiency, which helps in-depth understand West national area city commercial banks input-output of overall status and individual differences and the caused differences of reasons. Therefore,the city commercial banks in western ethnic areas can improve their business performance,created profit, and control business risk. Thus they can better serve the local area economy development and the region coordinated development, which has important significance.Firstly, this paper explained the connotations of Bank efficiency, introduced the classification of Bank efficiency and its calculation method. Then this paper summarized the characteristics of ethnic area of Western China city commercial banks at present stage,and from security, liquidity and profitability, growth rate of four aspects of the ethnic area of Western China city commercial banks are financial ratio analysis.This core part of this paper is the ethnic area of Western China city commercial bank efficiency measurement and empirical study on the factors affecting the efficiency. Based on 2010-2014 samples of 10 city commercial banks in Western ethnic areas, more mature research data envelopment analysis(DEA), reckons 10 sample city commercial bank2010-2014 year comprehensive technical efficiency, pure technical efficiency and scale efficiency. And on this basis, a Tobit model analysis of factors affecting the efficiency ofcity commercial banks in ethnic areas in West China. Empirical results show that bank size,degree of innovation, profitability, have significant effects on comprehensive technical efficiency of city commercial banks in western ethnic areas.