China's Commercial Bank Total Factor Productivity And Its Influencing Factors Analysis

Banks as the core of the economy are playing an important role in the modern market economy.The efficieney of banking was the centralized reflection of the competition ability of commercialbanks,which was the key element to defense financial risk and open up the banking industry.Aftering joining in WTO,banking business in our country had faced more intense marketcompetition.In such living circumstance, China's commercial banks must improve itsefficiency to have the power of competing with international banks and developcontinuously. This paper provided an empirical analysis on the Malmquist total factor productivityand influence factors of China's14commercial banks in2005-2010.First,this paper analysed technical efficiency, pure technical efficiency and scaleefficiency of China's14commercial banks from the static angle using DEA—BBCmodel the results showed that our country commercial banks' technical efficiency hadgenerally improved than a few years ago,but still showing technology without efficiency,this from a certain degree shows that China's most commercial Banks can take to reducethe input method to reduce the cost and costs, thus to more investment in less to gainmore outputs.Second,this paper provided an empirical analysis on the Malmquist total factorproductivity from the dynamic angle, the results showed that total factor productivity ofChina's commercial banks was improving. Since China's accession to the WTO, theforeign capital banks were full and open policy in early2007, our country commercialbanks took a series reform on assets reorganization, listing introducing the advancedmanagement method etc to improve the international competitiveness continuously, sothat total factor productivity had large improvement.Finally, based on the empirical analysis on the Malmquist total factorproductivity,from the domestic and foreign related research about commercial banksefficiency influence factors,and combined with the management present situation ofChina's commercial banks,this paper using OLS method made regression analysis onmany factors which affected China's commercial banks total factor productivity,theresults showed that improvement of education degree,pluralization of the structure ofproperty rights,improvement of GDP,the improvement of the quality of assets, thedecline of bad loans and deposit-loan ratio,reasonable bank scale promoted the totalfactor productivity enhancement. Therefore,China's commercial banks should promotethe total factor productivity from education degree, the side of the structure of propertyrights,the bank asset quality, deposit-loan ratio and the bank size etc.