Title :
Technical, Pure Technical and Scale Efficiency of China´s Banking Industry
Author_Institution :
Sch. of Financial Manage., Shanghai Inst. of Foreign Trade, Shanghai, China
Abstract :
The paper empirically investigates the technical efficiency, pure technical efficiency and scale efficiency in China´s banking over 1998-2003 period. A non-parametric method of Data Envelopment Analysis (DEA) has been used to estimate banking efficiency scores. The efficiency comparison between the state-owned banks and other newly joint stock banks is conducted. Ordinary Least Squares is used to identify the key factors related to banking efficiency. Newly joint stock banks are found to be more efficient than the four state-owned banks. The results indicate that several main factors affect banking efficiency, including structure of property rights, manpower capital and market competition. Our policy suggestions are that Chinese government should implement financial system reform to foster competition in the banking market, and that a better environment is created for sustainable development of commercial banks.
Keywords :
banking; data envelopment analysis; least squares approximations; sustainable development; China; banking efficiency scores estimation; banking industry; commercial banks; data envelopment analysis; financial system reform; joint stock banks; manpower capital; market competition; nonparametric method; ordinary least squares; property right structure; pure technical efficiency; scale efficiency; state-owned banks; sustainable development; technical efficiency; Banking; Data envelopment analysis; Finance; Joints; Productivity; Banking reform; Data Envelopment Analysis; IT Investment; Technical efficiency;
Conference_Titel :
Information Management, Innovation Management and Industrial Engineering (ICIII), 2011 International Conference on
Conference_Location :
Shenzhen
Print_ISBN :
978-1-61284-450-3
DOI :
10.1109/ICIII.2011.195
