Author(s)

Hu Caixia ¹

Affiliation(s)

¹ Zibo Vocational Institute, Zibo, China

Corresponding Author

Hu Caixia

ABSTRACT

This paper applies Data Envelopment Analysis to evaluate the relative operation efficiency and intermediation efficiency of 12 Chinese commercial banks and four foreign banks from 20×9 to 20×1. The aim is to find the Chinese banking efficiency trend after banking revolution and financial crisis. Results show that in China the operation performance is better than intermediation performance and the four state-owned banks have improved significantly in recent years. Moreover, state-owned banks have higher operation efficiency than joint-stock commercial banks, but state-owned banks have no advantages in intermediation approach. Larger and smaller sized banks perform better than do medium banks in terms of operation, while there are no differences in intermediation. Finally, old banks have a better performance both in operation approach and intermediation approach.

KEYWORDS

Bank efficiency, operation efficiency, intermediation efficiency, size, age

CITE THIS PAPER

Hu Caixia, Efficiency of Chinese Banking Compared with Developed Countries: A Data Envelopment Analysis Approach. Accounting, Auditing and Finance (2023) Vol. 4: 13-17. DOI: http://dx.doi.org/10.23977/accaf.2023.040303.

REFERENCES

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[4] Milenković Nada, Radovanov Boris, Kalaš Branimir, Horvat Aleksandra Marcikić. (2022) External Two Stage DEA Analysis of Bank Efficiency in West Balkan Countries. Sustainability, 14(2).
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