AN Empirical Analysis on Scale Economy of Chinese Commercial Banks Based on Econometrics

摘要

This paper from the view of the bank of scale economy, uses Transcendental Cost Function to conduct empirical analysis and uses Econometric Software (Eviews) to carry on goodness of fit analysis and variables significant testing of scale economy with our country's 14 commercial banks in 1999-2006.And 14 commercial banks in accordance with the asset size are divided into three categories, named large-scale banks, medium-sized banks and small banks. Empirical analysis showed that: large-scale banks are not basically scale economy. The factors are followed as that, the state-owned commercial banks' long-standing old organizational structure, non-performing assets and the time lag of the joint-stock reformation. Medium-sized banks achieve the boundary value of scale economy at 2004, which are scale diseconomy from 2005. Basically, small banks are in a stage of increasing returns to scale economy, and continue to achieve the optimum size range. For the scale diseconomy of commercial banks.this paper puts forward some reasonable proposals.