Abstract

This paper introduces the latest research on the application of the new dynamic network DEA method in the measurement of the operating efficiency of the banking industry, and measures the operating efficiency of 15 listed banks in China by using the directional distance function (DDF) and the new dynamic network DEA model combined with the Malmquist index. To effectively evaluate the impact of uncertain financial risks on the operating efficiency of banks, we respectively selected the measurement indicators of total assets, number of employees, deposits, and net profit to calculate the operating efficiency of banks in the process of medium and long-term investment. According to the actual situation of bank operation, the process of bank operation is divided into the input stage of capital and manpower, the profit stage of capital operation, and operation stage, and a two-stage DEA network model is constructed. By measuring the overall operating efficiency of China's 15 banks from 2017 to 2022, the results show that the new dynamic network DEA model can better distinguish the efficiency of China's banks from the single-stage DEA model. In the new dynamic network model, the total factor productivity of most banks in China is reduced to varying degrees, which is greatly affected by pure technical efficiency.

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