Ranking Chinese commercial banks based on their expected impact on structural efficiency

•We employ a new way of ranking the banks based on their expected impact of structural efficiency.•Two contribution indices, namely average efficient contribution index and average contribution index, are empirically utilized.•We find important differences between our ranking result and that of the...

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Bibliographic Details
Published in:Omega (Oxford) 2020-07, Vol.94, p.102049, Article 102049
Main Authors: Zhu, Ning, Hougaard, Jens Leth, Yu, Zhiqian, Wang, Bing
Format: Article
Language:English
Subjects:
Banking
Data envelopment analysis
Marginal contribution change
Ranking method
Structural efficiency
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Summary:•We employ a new way of ranking the banks based on their expected impact of structural efficiency.•Two contribution indices, namely average efficient contribution index and average contribution index, are empirically utilized.•We find important differences between our ranking result and that of the conventional super-efficiency approach.•The new way of ranking the banks is more in line with expectations based on various key performance indicators. This paper examines the performance of 16 major Chinese commercial banks. In particular, we employ a new way of ranking the banks based on their average marginal impact on structural efficiency. We find important differences between our ranking results and that of the conventional super-efficiency approach. We argue that in case of Chinese commercial banks the new way of ranking the banks is more in line with expectations based on various key performance indicators. The findings further reconfirm that the performance of the large commercial banks surpass that of the small to medium sized commercial banks.
ISSN:0305-0483
1873-5274
DOI:10.1016/j.omega.2019.03.007