Analysis On The Influence Factors Of The Operating Efficiency Of The City Commercial Banks In Hebei Province

With the spread of trans-region management and the increase in the number of business outlets in the city,city commercial banks in Hebei Province has rapidly developed and has become an important economic and financial force in the province.Recently,city commercial banks in Hebei Province have faced the pressure of the internet financial business innovation,the new normal economy,and interest rate marketization.There have been problems such as a decrease in capital adequacy ratio,a small proportion of the intermediate business income,a rising non-performing loan ratio,and a low profitability of assets.This is extremely detrimental to its operation and development.Therefore,city commercial banks urgently need to improve their operating efficiency in order to enhance their profitability.This paper comprehensively analyzes the changes in the operating efficiency and total factor productivity of city commercial banks from 2010 to 2016 through Data Envelopment Analysis(DEA)and Malmquist index.It is found that the operating efficiency of the city commercial banks in Hebei Province is still far from the best and has been declining in the past two years.And most of the banks are in the decline stage of returns to scale.Based on this,Tobit regression analysis was used to study the influencing factors that make the operating efficiency of the city commercial banks decline.The results show that there is no correlation between trans-region management and the operating efficiency of city commercial banks;excessive expansion of business scale results in low operating efficiency;the proportion of the intermediary business income of the city commercial banks in Hebei Province is extremely low,and enhancing the innovation capacity will greatly improve the operating efficiency of the banks;the non-performing loan ratio reflecting the bank's risk management capability is positively correlated with operating efficiency.After replacing the original non-performing loan ratio index with a higher non-performing loan ratio,the non-performing loan ratio is negatively correlated with operating efficiency.Based on the above analysis,this paper proposes suggestions for improving the operating efficiency of city commercial banks from five aspects.It could reduce the number of branches and reduce spending redundancy;control risks reasonably and operate within a reasonable risk range;innovate traditional businesses,build a difference service system,and cultivate new profit growth points;optimize and develop Internet business channels and develop joint mobile payment terminal software for 11 city commercial banks in Hebei Province or establish trans-provincial operation pilots;strengthen market positioning and implement a centralized strategy.