Science and Education Publishing American Journal of Applied Mathematics and Statistics 2333-4576 2 6A 2014 11 21 Assessing Chinese Commercial Bank Technical Efficiency Using Parametric Hyperbolic Distance Function Approach 20 25 EN Vishwa Nath Maurya Department of Mathematics and Statistics, School of Science & Technology, The University of Fiji, Fiji Xuan Fang Feng Yang AJAMS201426A4 10.12691/ajams-2-6A-4 2014 11 01 2014 11 10 2014 11 21 This paper contributes to the literatures about Chinese commercial banks technical efficiency. In order to eliminate the deviation of efficiency scores caused by an undesirable output that is represented by banks' non-performing loans, the estimation is based on an enhanced parametric hyperbolic distance function which considers not only desirable outputs but also undesirable outputs. Furthermore, we extend the model to divide the factors that affecting technical efficiency into direct factors and indirect factors and exclude the influence of the latter when analyzing the determiners of banks technical efficiency. The validity of this model is examined by a panel of bank data from 2004-2010.