Bank Efficiency and Strength Appraisal based on Multi-dimensional Statistical Combination Model

It is the best method to use principal component analysis model to deal with many indicators during the evaluation process of operational efficiency and comprehensive strength about banks, which could deliver comprehensive and objective summary of the overall situation of banks. However, it is more useful and beneficial to comprehensive evaluation by distinguishing between input indicators and output indicators, then to appraise the overall efficiency and the comprehensive strength about banks. Based on this, this paper constructs a PCA-DEA multivariate statistical combination model. For the objectivity and difference during the appraising process, the author further improves the new model for a PCA-DEA-TOPSIS multivariate statistical combination model. Finally, we have taken an empirical evaluation using 14 listed commercial banks in China, and the result show that the model is feasible and effective.