Abstract: Based on the theoretical analysis, this paper applies the entropy method to establish a comprehensive index system for the evaluation of the overall level of risk control and comprehensive efficiency of the supervision of China’s commercial banks. Considering the trinity-characteristics of banking supervision system consisting of the people’s Bank of China, the CBRC and the financial offices of local governments, the following conclusions have been drawn: the amount of penalties on banking illegal transactions is not correlated with the supervision efficiency of China’s commercial banks; the capital adequacy ratio, the loan to deposit ratio, the percentage point of the non-performing loan rate of urban commercial banks higher than that of the national joint-stock banks are negatively correlated with the supervision efficiency of China’s commercial banks; the total asset variation of the people’s bank and the different loan balance in local and foreign currency of the banks are positively correlated with the supervision efficiency of China’s commercial banks, but the effect is minor. Therefore, China should give the capital adequacy ratio a full play in the banking supervision, accelerate the construction of supervision information system and improve the supervision function of the local governments.

Key words: banking supervision; performance evaluation; risk control; comprehensive efficiency