Income Structure and Efficiency Analysis of Commercial Banks in China
|Keywords||commercial banks income structure efficiency of banks stochastic frontier approach data envelopment analysis|
With the deepening reform of our market economic system, the scale and efficiency of commercial banks showed a marked improvement. But, for a long time, as interest income is the main income source, the single income structure of commercial banks in China has not improved, which severely restricts the enhancement of market competitiveness of China’s commercial banks. Therefore, in order to seek new profit growth point, enhance market competitiveness and sustainable development capability, commercial banks in China must accelerate the financial product innovation, develop non-interest income, and realize the interest income and non-interest income balanced development of business income structure transformation. This is not only the urgent problem the commercial banks in China facing, but also the problem practical departments and theorists height concern.Based on the present situation of Chinese commercial banks, this article describes income structure of business banks in our country, according to the change trend of income structure of commercial banks in developed countries, and the environment Chinese commercial banks faced. By using the stochastic frontier approach and data envelopment analysis method, the relationship between income structure and bank efficiency of Chinese commercial Banks was analyzed empirically. Compared with the international big Banks, the income structure of Chinese commercial Banks is not reasonable; non-interest income business is still at the primary stage. And Chinese commercial banks’income efficiency is still relatively low, with a lot of room to rise. Finally, on the basis of the above analysis, the article puts forward some operable measures to help optimize the income structure and raise efficiency of Chinese commercial banks.