There are two typical subprocesses in bank productionââ?¬â?deposit generation and loan generation. Aiming to open the black box of\ninput-output production of banks and provide comprehensive and accurate assessment on the efficiency of each stage, this paper\nproposes a two-stage network model with bad outputs and supper efficiency (US-NSBM). Empirical comparisons show that the\nUS-NSBM may be promising and practical for taking the nonperforming loans into account and being able to rank all samples.\nApplying it to measure the efficiency of Chinese commercial banks from 2008 to 2012, this paper explores the characteristics of\noverall and divisional efficiency, as well as the determinants of them. Some interesting results are discovered. The polarization of\nefficiency occurs in the bank level and deposit generation, yet does not in the loan generation. Five hypotheses work as expected\nin the bank level, but not all of them are supported in the stage level. Our results extend and complement some earlier empirical\npublications in the bank level.
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