Research On The Efficiency And Total Factor Productivity Evaluation Of Commercial Banks In Countries Along “The Belt And Road”

The “Belt and Road” initiative is a major decision made by China in responding to domestic and international economic development situations and coordinating domestic and international situations.The implementation of the“Belt and Road” initiative requires financial support.Commercial banks,as the main financing channel,can provide strong guarantees for the construction of the“Belt and Road” initiative.With the continuous deepening of financial cooperation among the countries along the “Belt and Road”,strengthening international operations and opening up overseas financial markets are inevitable choices for commercial banks.Under this context,only by improving efficiency and total factor productivity(TFP)can commercial banks effectively grasp the new opportunities brought by the construction of the “Belt and Road” and realize the transformation and development of commercial banks.In fact,how to scientifically and reasonably evaluate the efficiency and TFP of commercial banks in countries along the “Belt and Road” and put forward reasonable policy recommendations has become an important topic of concern to the whole society.The development of this research can not only help commercial banks participate in international cooperation and implement the transformation of development for reference,and it is of great significance to improve the competitiveness and sustainable development of commercial banks.Existing literature has done a lot of research on the efficiency and total factor productivity of commercial banks,and the relevant results are very rich.However,most of the studies have not considered the impact of intermediate products and carry-over products on the entire business process,and the evaluation results obtained are biased to some extent.In addition,the research on the commercial banks in countries along the “Belt and Road” is seldom.At present,there is no literature study on the efficiency and total factor productivity of commercial banks in countries along the “Belt and Road”.By constructing a dynamic network DEA model,this paper evaluates the efficiency and total factor productivity of commercial banks in countries along the“Belt and Road” in order to make up for the lack of existing research.This article combines data from 236 commercial banks in 56 countries along the “Belt and Road” from 2011 to 2016,and considers the business process of commercial banks as a two-stage dynamic network structure.While considering the impact of intermediate products and carry-over products on the entire production and operation process,this paper evaluates the efficiency and total factor productivity of commercial banks in countries along the “Belt and Road”,analyzes the factors that affect the efficiency of commercial banks,and tests the convergence of total factor productivity.And give corresponding policy suggestionsThe main research conclusions of this article are as follows:(1)From 2012 to 2016,the overall efficiency of the commercial banks in countries along the “Belt and Road” is not high.The average SBI is 1.2013,which means that an average of 120.13% of redundancy needs to be reduced in the entire operation process.The degree of redundancy in the non-interest-bearing business stage is as high as 75.77%,and there is 44.35% redundancy in the non-interest-bearing business stage.The change trend of SBI efficiency,DDF efficiency,and Ine B efficiency showed a change trend of “first drop,then increase,and then decrease”.(2)The efficiency of the eight regions from high to low is Southeast Asia,South Asia,Central Asia,West Asia,Eastern Europe,Central Europe,Southern Europe,and East Asia.Low-income countries have the highest levels of efficiency,followed by high-income countries and upper-middle-income countries,and lower-middle-income countries have the worst efficiency.(3)From the perspective of bank type,the larger a commercial bank is,the higher its efficiency level is.Non-shareholding commercial banks are more efficient than joint-stock commercial banks.State-owned commercial banks are more efficient than non-state-owned commercial banks.The efficiency of unlisted commercial banks is higher than that of listed commercial banks.(4)Consumption levels,foreign investment,operating costs,risk levels,economic development levels,profitability and other factors have a significant impact on the efficiency of commercial banks in countries along the “Belt and Road”.(5)From 2013 to 2016,the overall TFP of the commercial banks along the“Belt and Road” countries showed a “U-shaped” trend of “decreasing first and then rising”.The overall TFP decreases by 0.3% annually,the average annual reduction in efficiency change is 0.56%,the average annual increase in technological change is 0.26%,the average annual increase in pure technical efficiency is 0.63%,and the average annual reduction in scale efficiency change is1.18%.In the first stage,the TFP drops by 0.08% annually.The average annual growth of TFP in the second stage is 16.72%.(6)From high to low,the TFP growth in the eight regions is Central Europe,Southern Europe,Western Asia,Eastern Europe,Central Asia,Southeast Asia,South Asia,and East Asia.Commercial banks in high-income countries have the fastest TFP growth,while commercial banks in low-income countries have the slowest growth in TFP.The TFP of commercial banks in lower-middle-income countries declined slightly,and the TFP of commercial banks in upper-middle-income countries dropped sharply.(7)In terms of changes in TFP in the overall stage,the TFP of large-scale commercial banks is slower than that of small and micro commercial banks.The growth rate of TFP of joint-stock commercial banks is slightly higher than that of non-shareholding commercial banks.The TFP growth of non-state-owned commercial banks is higher than that of state-owned commercial banks.The growth rate of TFP of non-listed commercial banks is higher than that of listed commercial banks.(8)There are absolute ? convergence and conditional ? convergence for the total factor productivity of the national commercial banks in countries along the“Belt and Road” at the overall stage and at each sub-stage.The innovations of this article are as follows:First,this paper studies the efficiency changes of commercial banks in countries along the “Belt and Road”:(1)Under the premise of considering the dynamic network structure and joint weak disposability,this paper constructs a new two-stage Dynamic Network Slacks-based Inefficiency(DNSBI)distance function,which can measure the overall efficiency changes,efficiency changes of each sub-stage and efficiency changes of each indicator;(2)Using this distance function,the SBI efficiency is decomposed into DDF efficiency and Ine B efficiency,and the efficiency decomposition expressions of each stage and each index are given.This method has a more comprehensive decomposition of efficiency;(3)Under the premise of considering the intermediate products and carry-over products of commercial banks,the two-stage DNSBI distance function is used to analyze the efficiency changes of commercial banks in countries along the “Belt and Road” in each year,the efficiency changes in various regions,and the efficiency changes in various countries,the efficiency changes of different types of commercial banks and the efficiency changes of each commercial bank;(4)Combining the Quantitative regression model,influencing factors of the efficiency of commercial banks in countries along the “Belt and Road” are discussed.Second,this paper studies the total factor productivity changes of commercial banks in countries along the “Belt and Road”:(1)Under the premise of considering the dynamic network structure and joint weak disposability,this paper constructs a new Dynamic Network Directional Distance Function(DNDDF)distance function,and gives the mixed distance function expression of the distance function;(2)This paper uses this distance function to construct a new two-stage Dynamic Network Malmquist-Luenberger(DNML)index,and gives a decomposition expression of the index,which can study the overall total factor productivity changes and various sub-stages total factor productivity changes.This index has a more comprehensive evaluation of total factor productivity;(3)Under the premise of considering the intermediate products and carry-over products of commercial banks,this article uses the index to study the total factor productivity changes of commercial banks in countries along the “Belt and Road”.Researched the changes in various years,the changes in various regions,the changes in various countries,the changes of different types of commercial banks and the changes of each commercial bank;(4)Combined with the convergence analysis model,the overall total factor productivity and sub-stages total factor productivity of commercial banks along the “Belt and Road” were analyzed.