Research On Reform-Efficiency Assessment Of Rural Commercial Banks In Different Areas Of China

With the development of urban and rural integration and the deepening of the small business content,rural credit cooperatives develop to rural commercial bank has become a realistic choice in our country through restructuring and reorganization equity structure,improving the management pattern,etc.,The scale and effic iency of the development of rural commercial banks is the important factors influencing the rural financial system to.Therefore,the rural commercial bank management efficiency evaluation,not only has theoretical value,a lso has the reality guiding sense.The thesis selected 9 rural commercial banks in east part,middle part and west part of China to assess business efficiency during 2010-2015 by DEA and Malmquist index analysis.C hange trends of these selected banks were firstly analyzed by these two methods.Secondly,I explored effects of different factors on the business efficiency.Finally,policy suggestions were concluded according to analysis results mentioned above.Main findings of this thesis are as follows:(1)Results from DEA model showed that operating efficiency of selected banks increased slightly except for banks of Guangzhou and Jiangyin.Results from Malmquist Index model showed that total factor productivity decreased with an averaged Malmquist index value of 0.880 during 2010-2015.In particular,the lowest Malmquist index value was found in 2012.Among components of the index,technology factoraffected the index significantly indicating a primary contribution on the index.(2)Based on model results,difference of bank operating efficiency between different areas were compared.Operating efficiencies of banks in east area showed decreasing trends with an averaged Malmquist index value of 0.990 during 2010-2015.Operating efficiencies of banks in middle area showed increasing trends with an averaged Malmquist index value of 1.005 during 2010-2015.Operating efficiencies of banks in west area showed decreasing trends with an averaged Malmquist index value of 0.899 during 2010-2015.Operating efficiencies of banks in east and middle areas were better than bank in west area,which could be attributed to location advantage and economic development.However,there were strong variations between east and middle areas.Scale efficiency of bank in west area ascended gradually indicating a better developing prospect,though its operating efficiency showed a decreasing trend.(3)Technology was the main factor influencing operating efficiency of rural commercial bank,which was detected by technique efficiency and technique efficiency change index in DEA model and Malmquist index model,respectively.Scale efficiency is another manifestation of technological effect.Scale efficiency showed decreasing trends in large banks(e.g.Guangzhou rural commercial bank and Tianjin rural commercial bank),and remained stable in midsize banks(e.g.Wuhan rural commercial bank and Chongqing rural commercial bank),but showed increasing trend in small banks.(4)Effects of inner management factors on bank operating efficiency were analyzed by Tobit regression model.The analysis showed that profitability,management and capital adequacy ratio had positive promotion on bankoperating efficiency.Rural commercial bank could optimize its operating efficiency by enhancing profitability,concentrating on major business and preserving abundant capital.