The analysis of commercial banks' operative efficiency and study on the choice of improving approaches

As a main channel for enterprises to finance indirectly in China, the commercial bank is playing a very important role in the imperfect financing market. The role it plays in mobilizing the total amount of social resources, and optimizing the distribution of resources- is becoming increasingly outstanding. Especially the all-rounded opening of the banks after China's entry into WTO will bring great impact from foreign-ftinded banks to commercial banks. To enable China's commercial banks to overcome the deficiency effectively and develop quickly, we have to analyze and study carefully the. commercial banks' operative efficiency so that pertinent reforming measures can be adopted timely. By making use of DEA approach, this article enlarges the connotation of analysis of commercial banks' efficiency from the aspect of optimization of input and Output, and puts forward the leading-edge approach of strategy and information for the management of commercial banks in choosing improving approaches and ensuring the realization of their overall operative targets. The empirical studies indicate that the analysis and judgment made according to the data of operative efficiency based on DEA are scientific and sound. This approach can not only reflect the current state of efficiency of a decision-making unit and its developing tendency, it can also deduce backward the ideal input value and point out the direction to improve according to projection of inefficient unit on the front line, so that a large amount of quantitative managerial information and reference resources are supplied for the supreme decision-making management to judge and work out reasonable operative target, and enable them to make more scientific and reasonable strategy.