Does Capital Regulation Promote China Banking Industry Efficiency？ ——An Empirical Study Based on Two Stage DEA Intertemporal Comparison Model
ZHANG Ling1,ZHANG Sheng2
1.School of Management, Xi’an Jiaotong University, Xi’an 710049, China; 2.School of Public Policy and Administration, Xi’an Jiaotong University, Xi’an 710049, China
Abstract Based on 2006~2011 panel data of 25 commercial banks in china, the paper measures the banking industry efficiency driven by capital regulatory with the model of two stage DEA intertemporal comparison. Through the changes of the input redundancy ratio and output loss ratio, the paper completes intertemporal comparison of two stage DEA. The result shows that: capital regulation promotes china banking industry efficiency by improving banking capital using efficiency and risk management level; capital supervision promotes the efficiency of the big banks more compared to smaller banks; and for the small and medium banks, the non-interest income business still has a great potential. Therefore, regulators should steadily push forward capital regulation to promote banking efficiency; commercial banks should strengthen capital management, optimize the business structure, implement differentiation strategy to raise bank operating performance.
ZHANG Ling,ZHANG Qing. Does Capital Regulation Promote China Banking Industry Efficiency？ ——An Empirical Study Based on Two Stage DEA Intertemporal Comparison Model. Economic Survey, 2016, 33(6): 0155.
2016, Vol. 33 
