Study On The Impacts Of Foreign Banks’ Entry To Home Banks’ Productivity In China

In recent years, although the international financial market turmoil, China has been the focus of foreign investors. Although the development of foreign banks in China is small in scale, with Chinese financial market has gradually improved, foreign bank assets in China have gradually expanded, the ability to absorb deposits gradually increased. At the same time, it can bring experience and more challenge to Chinese commercial bank.This paper uses the ISP method can not only measure the efficiency of each commercial bank, but also measure every kind of factor inputs in production efficiency. On this basis, can decompose TFP and each input productivity for technological progress and efficiency improvement. The results show that: first, the state-owned commercial banks still occupy the leading position in China’s commercial banks, but the total factor productivity of poor performance of state-owned commercial banks, joint-stock commercial banks performed better, performance of city commercial banks in the total factor productivity of most excellent; second, the regression result shows that foreign bank entry has a significant promoting effect on the our country commercial bank total factor productivity; third, the entry of foreign banks on China’s different types of Commercial Bank(the state-owned commercial banks and non-state-owned commercial bank) there was no significant difference between the role of different property rights of commercial banks by the impact is no difference in the statistical sense.Therefore, the optimization of commercial banking experience of external environment, improve their living space, improve its competitive environment, pay attention to technology innovation, is the important content and direction of the reform of commercial banks.