Study On The Efficiency Loss And Evasion Mechanism Of Chinese Commercial Bank

Finance is the core of modern economy.Commercial banks are the important part of Chinese financial market.Its efficiency is related to the progress and development of national economy.As the opposite of efficiency,the efficiency loss is not conducive to the steady economic growth.The efficiency loss of Chinese commercial banks exists objectively,but there are few relevant studies.It is of theoretical and practical significance to study the efficiency loss and evasion mechanism of Chinese commercial banks.The efficiency loss of commercial banks is the relative difference between the actual and the ideal efficiency,which is embodied in the relative difference between the efficiency under the condition of non-expected output and expected output.Its evaluation is indirectly derived from the efficiency evaluation of commercial banks.The efficiency loss evasion mechanism exists in scattered countermeasures to reduce efficiency loss.This paper introduces the basic principle of data envelopment analysis(DEA),and briefly describes DEA representative models such as CCR,BCC,etc.On the one hand,it analyzes the objective status quo of efficiency loss of Chinese commercial banks,include expounds its performance,influencing factors and evaluation.On the other hand,it analyzes the current situation of the efficiency loss evasion mechanism,including the reason of establishing evasion mechanism,and the content and form of it.Most of the existing literature analyze the efficiency loss by measuring the efficiency.The efficiency of banks is quantitative,but the efficiency loss is largely a qualitative description.There are a lot of literatures about the efficiency loss of commercial banks under the condition of non-expected output such as non-performing loans,but few about the efficiency loss under the condition of non-expected output such as both non-performing loans and cost-income ratio.The study is carried out by measuring and comparing the efficiency of Chinese commercial banks from 2000 to 2017 with and without the consideration of non-performing loans and the cost-income ratio of non-expected output.We select the SBM-Undesirable model and Malmquist-Luenberger productivity index,in terms of both static and dynamic,respectively considering only the undesirable output of non-performing loans,and both non-performing loans and cost-income ratio,to investigate the efficiency losses.In addition to further static efficiency loss at differentequity structure of commercial banks,summarized as follows: First,comparing two cases of static efficiency loss,efficiency loss with only consider non-performing loans is higher.The existing risk prevention and control mechanism fails to play its due role.Instead,efficiency loss considers both the non-performing loans and cost-income ratio is low.Improving the cost control ability of Chinese commercial banks can buffer the negative impact of non-performing loans on efficiency;Secondly,by comparing dynamic efficiency losses,the productivity index losses of Malmquist-Luenberger are mainly caused by the efficiency losses of technological progress.It proves that the existing financial innovation mechanism is not sound;Thirdly,the overall efficiency loss of non-state-owned commercial banks is higher than that of state-owned banks,but the level of efficiency loss of them is gradually close in 2009-2017.It shows that no matter state-owned or non-state-owned commercial banks,their measures like reasonable control of costs,active disposal of non-performing loans,reduced efficiency losses successfully,but to different degrees.Combined with the empirical analysis,from two aspects which contains the existing mechanism is not perfect,the original mechanism did not play its role,we construct and optimize efficiency loss evasion mechanism as follows: First,the construction of safety as the core of the financial risk prevention and control mechanism.Establish risk prevention and control awareness,improve risk policy transmission mechanism,improve financial risk management system;Secondly,the establishment of for-profit as the goal of the cost control mechanism.On the one hand,the traditional concept of cost reduction should be changed to realize the optimal allocation of bank resources.On the other hand,the refined cost management method should be adopted to adapt to the new strategic adjustment of banks;Thirdly,we should optimize the market-oriented financial innovation mechanism,include external and internal financial innovation mechanism.