The Study on Efficiency of the Bank of China Under Financial Liberalization Conditions
|Keywords||Attracting Investment Overseas Expansion Profit Efficiency Stochastic Frontier Analysis|
Under the background of economic globalization and financial integration, all countries are actively improving the banking internationalization strategy, and the banking industry directing to the globalization of both business development and service. With the accession to WTO, China is accelerating its economic integration with the global economy. With the deep financial reform in China’s banking industry and the open up of financial markets, the "bringing in" of foreign banks and the "going out"of Chinese banks are together accelerating the globalization of Chinese banks. Whether to accelerate the process of China’s banks’s globalization helps in the enhancing corporate governance, upgrading management level, expediting the pace of financial innovation, training financial personnel, and other opportunities for the Chinese banks to ultimately enhance the bank’s efficiency? Will it adversely affect the financial security? In fact the fully opened situation of financial industry faces challenges, and also, efficiency improving and risk controling are the two eternal themes that banks should never ignore. Hereby, efficiency and security is the focus of this essay.Variables by introducing the error-free opening to improve the efficiency model, and the translog functional form based on the SFA model with BC (1995) step in the open under estimation of 15 Chinese-funded banks in China, 2000-2009 Analysis of the efficiency of bank profits. The error incorporated into the model without the efficiency of foreign ownership, the proportion of shares foreign institutions, non-performing loans ratio and capital adequacy ratio, return on net assets and other variables. The results showed that: the proportion of foreign institutions on bank shares profit plays an obvious role in promoting the efficiency, but the impact of the former is more significant. The average profit efficiency of state-owned banks as well as the national average continued to narrow the distance, making the non-state banks, especially joint-stock banks, relatively weaken in the efficiency advantages. With the international cooperation to further strengthen and fully open, the efficiency of Chinese banking industry has improved significantly.Come to this conclusion after empirical research: In order to secure, open and find a balance while reform, playing an active role to improve the regulatory system, and improving the regulatory approach is the key. And then, put forward the internal deepening financial reform, optimize the banking market structure; adhere to a sound and open policy, based on the further opening up of controllable risk; improve the financial regulatory system with financial supervision method recommended.