The Empirical Analysis on Improvement Measure of Chinese Commercial Banks Efficiencies

This paper investigates the improvement measure of Chinese commercial banks efficiencies based on analysis of the endogenous influence factors of bank efficiencies. The relationships between factors and bank efficiencies are figured out with simultaneous equations considering the cross interference of cost efficiency, technical efficiency and scale economy. According to the analysis results, we provide some advices to Chinese commercial banks for improving their efficiencies and performances. These advices are that Chinese banks must pay more attention to improve the validity of their inside resource, scale efficiency, noncredit operations and monitor five important financial factors which are ratio of credits to deposits, ratio of credits to total assets, ratio of interest expenditure to interest income, nonperforming ratio and assets of bank embranchment.