Analysis On Influencing Factors Of Efficiency In Chinese Commercial Banks

In recent years,China's commercial banks are increasingly competitive.Implementation of market-based interest rates and financial disintermediation are imperative.Although the profitability of major commercial banks to maintain growth,but growth is slowing down,improve bank efficiency and establish a sustainable competitive advantage become the only way of banks' development.From the perspective of corporate governance,we study 2008-2012 the influencing factors of China's 14 listed commercial banks' efficiency.By DEA data envelopment analysis,we select MALMQUIST function output-oriented variable returns to scale VRS model,the paper measured and compared the overall efficiency,technical efficiency,scale efficiency and technical progress index of 14 commercial banks.The study found that the overall efficiency of China's four major commercial banks is higher than that of the remaining 10 joint-stock commercial banks.The technical progress indexes are 4.9%,17.8%,8.5%,9.3% and 1% from 2008 to 2012.Regression analysis revealed some significant effect variables of the overall efficiency,which include NK corporate governance index,the ratio of loans to deposits,executive compensation,the size of supervisor board,the proportion of external supervisors.Among them,the level of corporate governance and asset allocation capabilities are significantly positive correlated with the overall efficiency;executive compensation,the size of the supervisory board and the proportion of external supervisors are significantly negatively correlated with banks overall efficiency.To improve the level of corporate governance and asset allocation will contribute to the bank overall efficiency improvement.By raising bank executive pay levels,to expand the size of the Supervisory Board or increase the proportion of external supervisors,not only can improve the overall efficiency,they may be counterproductive.