Efficiency and Productivity Changes of Commercial Banks and the Branches in China During 2007-2019
A DEA-Malmquist Approach
- DOI
- 10.2991/assehr.k.210121.130How to use a DOI?
- Keywords
- Bank efficiency, Productivity change, DEA-Malmquist approach
- Abstract
Efficiency and productivity changes in the banking sector are important because understanding whether financial resource allocation is efficient provides the basis of policymaking, routine management, and bank reforms. Using a DEA-Malmquist approach, this study firstly compared bank efficiency of the major commercial banks and examined whether their productivity has improved. The study then took Agricultural Bank of China (ABC) as an example to investigate efficiency and productivity changes of its branches. Results indicated that the annual average technical efficiency of stock-holding banks was lower than those of city commercial banks and state-owned banks. The shortage of state-owned banks was scale efficiency. Reducing size scales of input resources (i.e., staff, total assets, loans and payments) can be an effective way to improve state-owned banks’ efficiency. Regarding the ABC’s branches, those in Bohai Rim region, Central region and Northeast region had shortages in pure technical efficiency; while those in Yangtze Delta region, Pearl Delta region and West region should focus on improving scale efficiency. The findings of this study may assist managers, policymakers, and regulators of banks in China in evaluating banks’ competitiveness.
- Copyright
- © 2021, 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/).
Cite this article
TY - CONF AU - Libo Li AU - Wenbing Wu AU - Mingyu Zhang PY - 2021 DA - 2021/01/23 TI - Efficiency and Productivity Changes of Commercial Banks and the Branches in China During 2007-2019 BT - Proceedings of the 6th Annual International Conference on Social Science and Contemporary Humanity Development (SSCHD 2020) PB - Atlantis Press SP - 649 EP - 654 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.210121.130 DO - 10.2991/assehr.k.210121.130 ID - Li2021 ER -