The Profit Efficiency Of Chinese Commercial Banking Based On Stochastic Frontier Alternative
This paper applies stochastic frontier alternative profit function approach to analyze profit efficiency of 12 Chinese
Commercial banks during the sampling periods from 2004 to 2013. It is revealed from the study that average profit efficiency
of state-owned banks during the periods is higher than that of joint-stock banks. That the listing of banks are negatively
correlated with profit margin of commercial banks proves the enhancement of the profit efficiency after carrying out
joint-stock reform of state-owned commercial banks and listing.
Key word- Commercial Bank, Stochastic Frontier Approach, Alternative Profit Function , Profit Efficiency