Abstract: The Range Adjusted Measure (RAM) of efficiency is applied to evaluate the short-run and long-run efficiencies of Chinese banks, and the efficiency difference examinations using Mann-Whitney rank test present the distinct results. The significant differences are found in the short-run efficiencies between state-owned and joint-stock banks. The further work is made to measure the long-run efficiencies by adjusting the input and output slacks and eliminating short-run inefficiencies and there are no statistically significant difference results in long-run efficiencies between these two type of bank. The empirical results approve that introducing shareholding system in state-owned banks can improve their efficiencies and competitiveness substantially.

Key words: shareholding system reform, long-run efficiency, RAM model, Mann-Whitney rank test