A Study on the Efficiency Measurement of Chinese Commercial Banks Based on SFA

摘要

After China's entry into the WTO, Chinese banking is confronted with more fierce competition between native and foreign banks. So it is meaningful to do some research on the efficiency of Chinese commercial banks. Based on the review of some related researches on the efficiency of commercial banks, this paper firstly utilizes the Stochastic Frontier Approach (SFA) to calculate the technical efficiency of Chinese commercial banks during the periods from 2001 to 2007. Secondly, this paper makes the detailed analysis to present the situation of cost efficiency and the origin of cost inefficiency of Chinese commercial banks. Finally, this paper computes the total factor productivity of Chinese banking industry during the periods from 2001 to 2007 and probes the related influential factors.