A Hierarchical Study on the Efficiency of the City Commercial Banks in China

DOI

10.2991/gecss-14.2014.12How to use a DOI?

Keywords

city commercial banks, hierarchical efficiency, data envelopment analysis, policy suggestion

Abstract

City commercial banks have become an important pillar of the banking system in China. Data Envelopment Analysis (DEA) is used to study the efficiency of city banks at this paper, and evaluate the effects of four indicators profitability, liquidity, security and sustainability on bank efficiency. This paper divides Chinese City Commercial Banks into three categories according to their asset scale and selects those ranking top for analysis. After the regression for all observers, two dummies representing different capital scale are significant, which indicates the effect of data category. Liquidity is significant and higher liquidity leads to lower efficiency. After that, regressions are conducted on banks in different categories respectively. For banks with asset size larger than 100 billion, sustainability indicator is significant. For banks with asset size between 50 billion and 100 billion, liquidity and sustainability are significant. For banks with asset size between 30 billion and 50 billion, profitability is more important in determining efficiency. The paper puts forward some policy suggestions also.

Copyright

© 2014, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Sen Wang
AU  - Anqi Wang
PY  - 2014/01
DA  - 2014/01
TI  - A Hierarchical Study on the Efficiency of the City Commercial Banks in China
BT  - Proceedings of the 2014 International Conference on Global Economy, Commerce and Service Science
PB  - Atlantis Press
SP  - 45
EP  - 47
SN  - 1951-6851
UR  - https://doi.org/10.2991/gecss-14.2014.12
DO  - 10.2991/gecss-14.2014.12
ID  - Wang2014/01
ER  -