The Analysis On TPF Of Chinese Commercial Banks With Foreign Strategic Investors

After China joining in WTO and the liberalization of the finance sector, Chinese banking industry faces huge competition pressure. In order to enhance their competitiveness by using foreign advanced management experience and technology, Chinese commercial banks began to introduce overseas excellent banks as strategic investors. The effect of foreign strategic investors to Chinese commercial banks'efficiency and productivity got great attention.Based on the estimation of Malmquist productivity index for banks with foreign strategic investors, this paper analyzes changes in banks'TPF (the total factor productivity) and efficiency. Using the panel data model, this paper also analyzes the impact on banks'TPF by the introducing foreign strategic investors. The results show that, after introducing foreign strategic investors, the TPF of commercial banks did not get a significant growth, and in early time the TPF declined. Besides, without deep cooperation, the impact on banks'TPF making by the introduction of foreign strategic investors is not significant in the short terms. Finally, according to the analysis above, this paper give some further advice to enhance Chinese commercial banks'productivity and efficiency by cooperating with foreign investors deeply.