Abstract

In this paper, DEA model is used with the panel data of 21 commercial banks gathered during period 2006–2014 to measure the technical efficiency, pure technical efficiency and scale efficiency of commercial banks in China. Furthermore, a regression model for the factors affecting the efficiency of commercial banks is established with three levels includes the banking industry structure, the micro-level of commercial banking, and the macro-economic performance. The results show that the improvement of market competition level is beneficial to promote the efficiency of commercial banks. The risk control capacity, business innovation capability, and foreign capital involvement have positive influence on commercial banks’ efficiency. The market share and scale efficiency are inversely proportional in large state-owned commercial banks. The market share and scale efficiency are proportional in joint-equity commercial banks and municipal commercial banks. The broad money supply growth rate has positive influence on commercial banks’ efficiency improvement.

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