A Study on Commerical Banks' X-Efficiency and Cost Efficiency

The paper uses the adjusted three-stage DEA model to take a research on X-efficiency and cost efficiency of Chinese commercial banks to eliminate the effects of random errors and external environmental factors on X-efficiency. then we take their average as X-efficiency at the third stage. Conclusions are following:the X-efficiency at the third stage under the CRS hypothesis is more convincing; the efficiency values in the third stage is more real than that in the first stage; accession to the WTO with opening up the financial industry and the firms share reform have greatly positive effects on the X-efficiency, rather than the original expectations that opening up the financial industry will diminish the efficiency of financial sector; "the shortest plate" of commercial banks in China is deficient in cost-efficiency when firms operate.