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Financial Risk and Management Reviews

March 2021, Volume 7, 1, pp 60-66

Performance Evaluation of Chinese Commercial Banks Based on the Malmquist Index

Wenjing Xie


Meiling He


Guohui Huang


Lu He


Fan Lin


Wen-Tsao Pan

Wenjing Xie 1 ,

Meiling He 1 Guohui Huang 1 Lu He 1 Fan Lin 1 Wen-Tsao Pan 1 
  1. Hunan University of Science and Engineering, School of Economics and Management, Hunan, Yongzhou, Lingling, District, China. 1

Pages: 60-66

DOI: 10.18488/journal.89.2021.71.60.66

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Article History:

Received: 04 August, 2021
Revised: 06 September, 2021
Accepted: 30 September, 2021
Published: 22 October, 2021


Commercial banks have the function of promoting the raising and rational distribution of funds in economic construction in China. Commercial banks are also important in promoting the smooth development of socialist economic activities and the development of national economy and other socialist productive economic activities. At present, one of the biggest difficulties faced by China's commercial banks is the improvement of their efficiency and competitiveness in the face of continuous development and change. This paper establishes the efficiency evaluation model of commercial banks using the DEA-based Malmquist index; it also uses a data envelopment analysis (DEA) to analyze the financial data of nine listed banks in China from 2011 to 2020, studies the efficiency of commercial banks in China, and finds the efficiency differences. Based on empirical research, this paper puts forward corresponding suggestions. The research shows that the key to dealing with this situation depends on the banks’ effective utilization of scientific and technological innovation and technological progress. In order to achieve the goal of innovative and sustainable development of commercial banks, it is necessary to integrate the continuous developments of science and technology with finance.
Contribution/ Originality
The paper's primary contribution is finding that in the face of continuous technological innovation and technological progress, the effective way to improve the performance of Chinese commercial banks is to effectively integrate technology and finance.


DEA, Malmquist, Performance evaluation, Technological progress, Performance analysis, Business performance analysis, Efficiency evaluation, Commercial bank.


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Yu-Dan, X. (2018). Efficiency comparison of Chinese and foreign commercial banks based on DEA Model. Journal of Hubei University of Economics, 16(5), 46-52.

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This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.


All authors contributed equally to the conception and design of the study.

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