Back
 AJIBM  Vol.6 No.4 , April 2016
An Empirical Analysis of Chinese Commercial Banks’ Efficiency and Influencing Factors
—Under the Constraint of Non-Performing Loans
Abstract: This article is based on the SBM-Undesirable model to measure and decompose the technical efficiency of commercial banks from 2003 to 2014, and based on panel date to decompose its affecting factors. Our research shows: Since the banking began to reform from 2003, technical efficiency and pure technical efficiency have been significantly increased, the efficiency of scale also had obvious improved before 2008, thereafter growth is more gentle, and even state-owned banks are experiencing a downward trend. Reform impact is more consistent for different types of banks, basically promoting the improvement of the efficiency of the bank. With the advance of market interest rates, internal factors such as management, business innovation become the key to enhance the efficiency of banking sector. If the banks do not continue to reform and still blindly expand the scale of assets, they will not get higher efficiency.
Cite this paper: Tuo, M. (2016) An Empirical Analysis of Chinese Commercial Banks’ Efficiency and Influencing Factors
—Under the Constraint of Non-Performing Loans. American Journal of Industrial and Business Management, 6, 455-466. doi: 10.4236/ajibm.2016.64042.
References

[1]   Berger, A.N. and Humphrey, D.B. (1997) Efficiency of Financial Institutions: International Survey and Directions for Future Research. European Journal of Operational Research, 98, 175-212.
http://dx.doi.org/10.1016/S0377-2217(96)00342-6

[2]   Zhao, X. (2000) Empirical Analysis of State-Owned Commercial Bank Efficiency. Economic Science, No. 6, 55-62.

[3]   Zhao, X. and Kang, L. (2001) Demonstrative Study of Factors Affecting Our Banking Efficiency. Policy-Making Reference, No. 4, 62-71.

[4]   Zhang, J.H. (2003) Chinese Commercial Banks Efficiency Research by Method DEA and Empirical Analysis from 1997 to 2001. Journal of Financial Research, No. 3, 24-35.

[5]   Chen, J.X. (2004) An Empirical Study of China’s Banking Market Structure and Market Performance. Financial Forum, No. 5, 55-68.

[6]   Zhu, N., Zhuo, X., et al. (2004) Practical Analysis and Reform Policy on State-Owned Commercial Bank Efficiency. Management World, No. 2, 26-39.

[7]   Zheng, L.J. and Cao, T.Q. (2005) Empirical Analysis of China’s Commercial Banks’ Efficiency and Its Influencing Factors. Journal of Financial Research, No. 1, 32-41.

[8]   Tan, Z.X. (2006) Dynamic Change of Commercial Banks’ Efficiency Based on Improved DEA Method. Statistics and Decision, No. 6, 14-26.

[9]   Yang, D.Q. and Zhang, A.W. (2007) Efficiency of Chinese Commercial Banks from 1995 to 2005—An Empirical Analysis Based on Cost Efficiency and Profit Efficiency. Journal of Financial Research, No. 12, 25-39.

[10]   Tan, Z.X. and Wang, C. (2007) Structure of Chinese Commercial Banks Efficiency Research. Economic Research Journal, No. 7, 34-41.

[11]   Ke, K.L. and Feng, Z.X. (2008) Chinese Commercial Banks Efficiency Measurement and Its Influencing Factors. Application Statistics and Management, No. 1, 62-76.

[12]   Qin, T.A. and Li, X.F. (2009) Reform of Rural Credit Cooperatives Performance Evaluation Based on SBM—Undesirable Mode. Journal of Financial Research, No. 10, 82-95.

[13]   Wang, B. and Zhu, N. (2011) Total Factor Productivity Growth in China’s Banking Sector under the Constraints of Non-Performing Loans. Economic Research Journal, No. 5, 55-68.

[14]   Huang, H.C., Cao, Q. and Li, G.C. (2014) Efficiency of the Reform of Rural Credit Cooperatives under the Constraint of Non-Performing Loans—Based on SBM Directional Distance Function. Journal of Agrotechnical, No. 10, 44-59.

[15]   Ding, J. (2001) An Efficiency Comparison between Regional Commercial Banks in China. Finance Forum, No. 7, 43-51.

[16]   Gan, X.F. (2007) SBM Efficiency of Chinese Commercial Banks—Control Ownership and Macro Factors. Journal of Financial Research, No. 10, 78-90.

 
 
Top