Abstract

The efficiency of commercial banks is important for Chinese banking to prevent risk and improve the competitiveness, and also the core for China to deepen financial reform. By using the DEA-Malmquist indices approach, the efficiency and the efficiency changes of 14 China’s commercial banks during the period of 2007–2010 were analyzed in this paper. Results showed that the average efficiency of State-owned commercial banks is generally lower than that of joint-stock commercial banks and the urban commercial banks, the average efficiency of urban commercial banks is the highest; the overall efficiency of 14 banks is improved in 4 year due to efficiency progress and technical advance.

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