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Research on Commercial Bank's Operating Efficiency

In: Proceedings of the 8th International Conference on Financial Innovation and Economic Development (ICFIED 2023)

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  • Lanxin Zhang

    (Ohio State University)

Abstract

In this paper, we identify the specific factors influencing how well commercial banks operate by measuring their operating performance indicators, combining them with their operating input indicators, using data envelopment analysis technology, and investigating the effectiveness of their input. Solow residual value method and regression analysis to examine the causal relationship between various factors and their operating performance. Using data from 15 Chinese commercial banks from 2008 to 2021 and analyzing the factors affecting the operational efficiency of banking adequacy commercial, such banks loan ratio, total deposit, earnings per share, capital adequacy ratio, debt-to-assets ratio, return on assets, per capital income, and M2, we find that decreasing the bad loan ratio and improving return on assets and M2 can promote the operational efficiency of commercial banks. This conclusion provides a theoretical scientific foundation for enhancing the effectiveness of Chinese commercial bank.

Suggested Citation

  • Lanxin Zhang, 2023. "Research on Commercial Bank's Operating Efficiency," Advances in Economics, Business and Management Research, in: Yushi Jiang & Guangming Li & Wilson Xinbao Li (ed.), Proceedings of the 8th International Conference on Financial Innovation and Economic Development (ICFIED 2023), pages 526-535, Springer.
  • Handle: RePEc:spr:advbcp:978-94-6463-142-5_59
    DOI: 10.2991/978-94-6463-142-5_59
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