Department Efficiency Evaluation of Chinese Commercial Bank Based on EBM-DEA Model

Abstract

Financial industry is the core industry of modern economy, among which commercial Banks play a pillar role. The full entry of foreign Banks into China and the continuous deepening of China’s banking reform have led to great opportunities and challenges for China’s banking industry. Improving the efficiency of commercial banks is the key for promoting the development of commercial banks. This study took GY bank as an example, sampled the data of GY bank and its branches from 2016 to 2018, used EBM (Epsilon-Based Measure) DEA model to analyze the efficiency of commercial Banks. By comparison, it is found that the efficiency of most branches has been significantly improved, while the efficiency of a few branches has not changed much. Therefore, this study puts forward some suggestions to promote the efficiency improvement of GY bank.