| With the deepening of Mainland China’s opening up,the reputation of its financial industry in the international community has gradually increased.The commercial bank is one of the most important parts of the financial system and it plays a fundamental role in the economic development.As a result,the discussion about efficiency of commercial banks has drawn more and more attention in academia at home and abroad.In addition to the desirable outputs like net profit and interest revenue,the actual production outputs of banks are also accompanied by some undesirable outputs including the non-performing loans and customer complaints.In this paper,we firstly clarify that the bank efficiency are calculated more realistic in terms of synergistic consideration of desirable and undesirable outputs.Moreover,we compare this with the calculation of only taking the desirable outputs into consideration to see if there is a significant difference between the two.Secondly,through analyzing the efficiency of commercial banks in Mainland China,we find out some key factors affecting the efficiency.Thirdly,we also want to compare the commercial banks in Mainland China and Taiwan deeply.By analyzing the differences in efficiency and finding the main reasons for it,we can provide the basis for the improvement of the banking industry.In this paper,two models used to calculate the efficiencies under two conditions mentioned above are constructed by using the DEA method.We measure the efficiency between Mainland China and Taiwan commercial banks in two models with the data from 2010 to 2015.The results show that the efficiencies of cross-strait commercial banks are both on the rise.If we ignore the undesirable outputs,the efficiency of Mainland China is higher than Taiwan and the gap is exaggerated.However,when considering the undesirable output,the gap is obviously weakened.It demonstrates that commercial banks in Taiwan do better in the management of non-performing loans than Mainland China.At the same time,we investigate the cross-strait banks from management,property right structure and market structure to find out the factors that affect the efficiency.Based on the previous measurements,we use the panel data regression model to analyze the factors in Mainland China and Taiwan respectively.The results show that the factors in Mainland China mainly include profitability,cost management,asset allocation,financial innovation,property rights,concentration of property rights and market concentration.As for banks in Taiwan,the main factors are profitability,cost management,financial innovation and market concentration.In the end,this paper proposes some suggestions on strengthening the management of non-performing loans,changing the profit model actively,strengthening financial innovation,reasonably determining the structure of property rights and optimizing the market structure.And we hope these behaviors could help enhance the overall efficiency of the banking industry... |
