The Synthetic Efficiency Measures of the Chinese Commercial Bank System with Bad Loans and Reserve Using Two-Stage DEA Model

LI Hongxia

Abstract


Recently, the liquidity risk that exit in the b anks has constantly exposed. There was a panic when people heard the massage of money shortage and default. The bank management need to strengthen the safely and liquidity of bank as the same time to pursuit of profit maximization. According to above discover, in this article, efforts are made to analyze the synthetic efficiency of commercial banks combining the safety, liquidity, profitability of commercial banks. In this study, we utilize extend the two-stage centralized and non-cooperative DEA approach to disaggregate, evaluate and test the 16 major Chinese commercial banks in 2012 with the consideration of undesirable/bad output and reserve. The main findings of this study are as follows: i) The non-cooperative model may overestimate the efficiency of ignore the relationship between the traditional stage and financial innovation stage or disagree with the real bank operation. ii) Bad loans has significant negative effect on efficiency indicating that the large and more bad loans lead bank to lower efficiency. iii) The state-owned bank achieved relative lower efficient, it implies that the state-owned commercial banks are necessary to gradually complete their joint-equity reform.
Key words: Two-stage DEA model; Game theory; Tobit model; Reserve; Bad loans; Synthetic efficiency

Keywords


Two-stage DEA model; Game theory; Tobit model; Reserve; Bad loans; Synthetic efficiency

Full Text:

PDF


DOI: http://dx.doi.org/10.3968/10.3968/4826

Refbacks

  • There are currently no refbacks.



Share us to:   


Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: caooc@hotmail.com; ibm@cscanada.net; ibm@cscanada.org

 Articles published in International Business and Management are licensed under Creative Commons Attribution 4.0 (CC-BY).

 INTERNATIONAL BUSINESS AND MANAGEMENT Editorial office

Address: 9375 Rue de Roissy Brossard, Québec, J4X 3A1, Canada 
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net Http://www.cscanada.org 
E-mailcaooc@hotmail.com

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures