Abstract
This paper will separately use two analysing models: Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA). Those models are dedicated to figure out the problems existing in efficiency evaluation system of China's commercial banks. By analysing the gross deposits, total assets, gross loans, net profits, earnings per share and interest income of 14 China's commercial banks, the performance of these banks will be evaluated with SFA and DEA respectively, then the correlation analysis and consistency checked on efficiency values and efficiency rankings drawn by those two models will be conducted. What needs to be emphasized is that the outcomes of the analysis show that the efficiency evaluation values measured from SFA and DEA have strong correlation and consistency. Therefore, SFA and DEA could become effective tools on evaluating the performance of China's commercial banks.
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