The Research Of Total Factor Productivity Growth And Influence Factors In Chinese City Commercial Banks Analysis

Since Chinese City Commercial Banks’ inception in1995, after nearly20years’ development of Chinese City Commercial Banks, China has146City Commercial Banks by2013, the total assets accounted for the proportion of the entire banking industry reached10.03%, so they have been the important part of banking industry. Since their inception, they have been committed to provide services to small businesses of their funds. It can be said that the development of city commercial banks directly affects the development of enterprises and the financial market. At the same time, City Commercial Banks also have many problems in the rapid development, such as obvious regional service, relatively concentrated customer base, these factors are likely to become the factors restricting its productivity development. Therefore, an objective analysis of the total factor productivity of City Commercial Banks and explore the effect of City Commercial Banks’ productivity factor is particularly important.Because the traditional Malmquist-Luenberger index method with linear non-solution and no transfer characteristic, so we construct a global Malmquist-Luenberger (GML) index based on DEA to calculate the total factor productivity. We consider the proportion of state-owned and state-controlled as the main research indicator, and also data integrity, so we filter20City Commercial Banks from the146, and calculate the total factor productivity of City Commercial Banks during2008-2013, and separate productivity indicators into technological efficiency and technological improvement index, then analyse the reasons for Chinese City Commercial Banks’ productivity changes on detail. The results showes that:Chinese banking industry’s total factor productivity improved, and the growth stems from the improvement of technological efficiency; while the average total factor productivity declines, but from the whole sample banks’ technological efficiency index, Zhejiang Mintai Commercial Bank(3.05%), Guangdong Nanyue Bank (1.55%), Zhejiang Chouzhou commercial banks (0.91%), Zhejiang Tailong Commercail Bank (0.79%) and Tailong Commercial Bank (0.79%) are the most efficient four, and the technological efficiency of City Commercial Banks is the most highest compared to the other two types of banks in China.Secondly, based on the GML index and its decomposing value, this paper constructs panel Tobit model, then attempt to identify the factors affecting the productivity of City Commercial Banks both on macro and micro aspects. Empirical conclusions are as follows:(1)there is a significant positive correlation between the local GDP growth and the technological efficiency, and an obvious inhibitory effect on technological improvement; local inflation rate has significant promoting effect on the City Commercial Banks’total factor productivity and technological improvement.(2)the proportion of state-owned and state-controlled has significant negative effect on City Commercial Banks’technological efficiency, shows that too much state-owned composition in City Commercial Banks is not conducive to the technological efficiency; and significant positive correlation between asset scale and technological efficiency; equity capital ratio has significant negative effects on City Commercial Banks’total factor productivity; the number of banks’branches has significant promoting effect on banks’technological efficiency.