A Study on the Efficiency of China's Listed Banks and Its Influential Factors - Based on the Improved DEA Approach Combined with Index-analysis

Bank Efficiency has been an important issue. The paper divides the listed bank into two kinds as large bank (LB) and Small bank (SB), and calculates technique efficiency (TE), pure technique efficiency (PTE) and scale efficiency (SE) of listed banks from 1999 to 2007 with the improved approach of DEA, from two dimensions of both time and space. The results are that the general tendency of TE of listed banks is raising, but TE of SB shows great instability, and comparison of relativity-figures of three kinds of efficiency shows that TE of LB is mainly related with PTE, TE of SB is mainly related with SE. Choosing representative index of four aspects estimate, combined with bank efficiency, making tendency-figure to observe relativity, and get interesting summary as PTE is related with profitability, fluidity, security and SE is related with developing-ability. Finally, we use regression analysis, the conclusion based on value and significance of regression coefficients shows that, TE of SB is positively related with ratio of deposit to loan, negatively related with rate of return on common stockholders' equity and ratio of non-performing loans rate; LB only supports that the Basel capital accord is positively related with PTE. All result show that small banks in China must improve their efficient and ability of against-risk.