Research On China's Banking Sector Total Factor Productivity Growth

Despite the financial market transfers of funds,risk diversification,price discovery and reduce search costs and other important economic function not only depends on the operational efficiency of the various branches of the market,but its function effectively,adapt to a variety of environmental changes in technical efficiency is equally important,which at the heart of the banking sector in China’s financial system,the level of total factor productivity is directly related to the stable operation and development of the financial markets.The good news is that the Chinese government has realized that the financial industry is the key to ensure the stable operation of the national economy and promote the rapid development of China’s banking sector is one of the priorities of the Chinese government.Since joining the WTO,especially in the end of2006,foreign banks began to enjoy the treatment of the National Bank,the foreign banks with strong financial strength and relatively sound corporate governance mechanism,continued to seize our market share.China’s banking sector suffered"internal and external"circumstances,the state-owned banks to accelerate the pace of listed equities,the remaining bank to increase its capital through a variety of channels,whether the total factor productivity in China’s banking industry,growth is referred to herein refers to the size of the growth of total factor productivity.With the help of Malmquist-Luenberger index based on the common border production function theory,using MATLAB software estimates the total factor productivity index of the sample sector total factor productivity growth, where you can see what kind of indicators on the most obvious impact of changes in the banking sector’s total factor productivity growth.In addition,a comparative analysis of total factor productivity growth and foreign banking sector in developed economies.Empirical results show that,over the past decade,China’s banking industry’s total factor productivity in the continuous improvement of state means that the reform of China’s commercial banks from the whole successful,however,and can be seen in the comparative analysis of foreign developed economies,China value of the technical efficiency of the banking sector generally in decline,the decline in the index,which means even if technology rise,increase investment also can not get a considerable output,also means that more of the growth of total factor productivity in China’s banking sector reflect the extensive growth of an epitaxial,rather than the effectiveness of endogenous growth.Therefore,China’s banking reform and development in the future direction for the transition from epitaxial extensive growth to the development of the connotation and efficiency will remain.Then I discussed,on the basis of the TFP growth index measures the results of macro and micro factors that affect the growth of total factor productivity the empirical analysis using EVIEWS software.The empirical results show that:the micro level,the improvement of the bad debt provision coverge catalytic role in the promotion of the bank total factor productivity;At the macro level,the GDP growth rate,and the assets of foreign banks in China accounted for the improvement of the proportion of the total assets of the banking sector to improve promote the role of the banking sector’s total factor productivity.Finally,according to the previous study,macro and micro policy proposals put forward,such as the Bank technical efficiency as the current banking reform priorities,continue to deepen the reform of property rights and continue to improve the technical level of the banking sector.