An Empirical Analyze on the Credit Risk Management Efficiency of Chinese Commercial Banks

Commercial banks play a very important role in our financial market; their credit risk management efficiency determines the stability of the financial market. This paper introduced DEA (Date Envelopment Analysis) to analyze on our credit risk management efficiency based on the current studies. We´ve established the commercial bank efficiency assessment model, and used the model to measure the 13 main banks´ credit risk management efficiency from 2004 to 2008. The results showed that: (1) Chinese commercial banks´ credit risk management efficiency is ascending; (2) the non-state-owned commercial banks´ credit risk management efficiency in China are all higher than state-owned ones; (3) the average increase rate of the management efficiency in the non-state-owned commercial banks are lower than in state-owned ones.