The Measurement Of Total Factor Productivity Of China’s Banking Industry And Its Spatial Difference Analysis

Under the background of economic new normal, moderate expansion of aggregate demand and strengthen supply-side structural reforms to improve the quality and efficiency of the supply system have become a breakthrough point of our country’s economic transformation. This view has gradually become the consensus of the two circles of politics and science. As an important part of the financial sector, the banking is responsible for the flow of funds in the economy. It urgent to change the extensive mode of operation based on the demand side. Banks must through comprehensive innovation to increase effective financial supply capacity and improve the overall service quality and efficiency, to optimizes the allocation of financial resources.Enhance total factor productivity in the banking sector to ensure that the level of bank risk under control. And strengthen the bank booster effect of transformation and upgrading of economic structure.In recent years, China’s banking industry reform and innovation performance significantly. The support and promotion of economic and social development are becoming more and more important which effectively ensures the sound and fast development of China’s economy. But at the same time the downward pressure on the economy is growing, the pressure on the banking sector is increasing, non-performing loans and bad debt risk highlight. Therefore, how to realize the long-term development of the banking industry has become the focus of politicians, bankers and economists in the worsening economic and financial environment.In order to understand the current status of China’s banking industry, this study from the concept of total factor productivity through the systematic theory and literature review will attempt to "bad loans" as bad output(undesirable outputs) into model, to measure the banking industry TFP during 2005-2014 in China’s banking industry of 31 provinces municipalities and autonomous regions. This article introduced the new geography of economic analysis framework relevant outcomes from the spatialperspective on China’s banking sector total factor productivity and its influencing factors systematically explore, looking at the intersection of TFP theory and economic theory of space, but also got some Inspiration.It was found that China’s overall TFP banking situation was gradually improving,but in terms of the contribution of total factor productivity increased mainly due to technological progress. The use of China’s banking industry on the existing technology needs to be strengthened. In the banking sector total factor productivity development of China’s 31 provinces, municipalities and autonomous regions we find that the provincial banking between total factor productivity polarized phenomenon is very obvious,among them, Beijing’s total factor productivity growth rate as high as 22.6%, but Tibet banking total factor productivity growth was only 2.7%. And in total factor productivity of provincial banking evolution and its spatial difference problem analysis found that evolution between individuals and between provincial law still exist certain differences.Such as Tibet, Ningxia region and Beijing, Zhejiang, Guangdong area banking TFP volatile reaction by nature is not the same. In addition, using the spatial econometric model to the banking industry total factor productivity and its influencing factors of the empirical results also found that the provincial total banking in our country the accumulative effect of the spatial distribution of total factor productivity of the obvious,but only Shanghai, Jiangsu, Hainan and Guangxi provinces of the banking industry has positive spillover effects on total factor productivity. And 15 provinces such as Shanxi,Inner Mongolia banking between total factor productivity is the mutual negative spillover effect. The level of regional economic development, industrial structure, the degree of marketization, geographical location and other factors has a significant correlation with the total factor productivity of the banking industry. Accordingly put forward to strengthen the financial innovation concept, weaken the administrative division binding financial resources, and strengthen financial positive spillover effect,the implementation of differentiated regulation policy support, the coordinated development of regional finance road to provide a reference for the government and banking.