A Study on the Financial Efficiency of Chinese Commercial Banks: Under Multi-Index Panel Data

Chinese commercial banks are expanding considerably. After the global financial crisis, China's state-owned commercial banks emerged as the world's largest banks. Although China's small-and medium-sized enterprises (SMEs) face dilemmas, the country's commercial banks still record high rates of return, thus making their financial efficiency an important issue. To perform multi-index factor analysis, this paper uses the financial indexes of 18 commercial banks, and examines their financial efficiency. The scores of scale are much higher than those of other commercial banks, whereas smaller commercial banks show more competitiveness in profitability. To survive in the increasingly competitive environment, state-owned commercial banks should improve business performance via continuous innovation and reform.