TITLE:
Research on China’s Commercial Banks Rating and Ranking Based on DEA
AUTHORS:
Kai Ji, Wei Song, Renwen Wang
KEYWORDS:
Rate of Non-Performing Loans (NPLs); Undesirable Output; Data Envelopment Analysis (DEA); Cross Efficiency
JOURNAL NAME:
American Journal of Operations Research,
Vol.2 No.1,
March
14,
2012
ABSTRACT: China’s commercial banks are confronted with fierce competition from advanced big commercial banks abroad, which have much better performance in non-performing loans (NPLs) than China’s commercial banks. In this case, efficiency rating and ranking of China’s commercial banks are of great importance. We treat the rate of non-performing loans (NPLs) as an undesirable output from the operating process of commercial bank and utilize cross efficiency of DEA (Data Envelopment Analysis) to evaluate and rank China’s commercial banks between 2006 and 2008 horizontally and vertically. In the end we will propose our conclusion.