An Empirical Study Of Chinese Financial Marketization’s Impact On The Efficiency Of Listed Commercial Banks

The financial marketization is a hot problem of research and controversy in the financial field,on the one hand,financial marketization can promote economic growth,on the other hand,it will bring the hidden danger to the stability of the financial system.Since the end of last century,more and more countries in the world have joined the tide of financial marketization.Because of the importance of financial marketization,each country attaches great importance to the reform of domestic financial market.The banking industry as an important part of the financial system,financial marketization will have a significant impact on the banking development,so banking industry has become the foothold of many scholars to study the impact of financial marketization.It is of great significance to improve the efficiency of commercial banks,enhance the competitiveness of banks and guard against bank risks by studying the process of financial marketization in China.Based on the background of China’s financial system reform,this paper establishes the index system to measure the degree of financial marketization,combined the efficiency of 16 listed commercial banks,the paper studies the effect of financial marketization on the efficiency of China’s listed commercial banks.Firstly,this paper analyzes the theory and development of financial marketization.In order to calculate the financial market index,this paper selects seven variables to measure the financial marketization:the interest rate liberalization,financial institutions,freedom of access to credit loans,degree of state ownership of banks,strengthen prudential supervision,the development of capital markets,liberalization of foreign exchange market,using the method of principal component analysis to calculate the financial marketization index.Then,the paper uses four stage DEA method to measure the efficiency of listed of 16 Chinese commercial banks,and chooses the number of employees,net fixed assets,operating expenses,total deposits as input indicators,operating income,total loans,net profit as the output indicators.Finally,this paper establishes a multiple regression model of panel data to measure the degree of financial marketization and other factors on the efficiency of commercial banks in China.The results show that:since 1978,China’s financial marketization has increased year by year.The efficiency of the 16 listed commercial banks in China is increasing year by year,and the scale efficiency has a great impact on the technical efficiency.The efficiency of China banking industry also affected by the global financial crisis in 2008.The efficiency of China’s commercial banks will be significantly affected by the financial marketization,will also be affected by the structure of property rights of commercial banks,from the macroeconomic indicators point of view,the GDP growth rate,the broad money supply M2 growth rate has a positive impact on the efficiency of China’s commercial banks,but the consumer price index CPI has a significantly negative influence on the efficiency,from the perspective of commercial banks,loan deposit ratio,the rate of return on net assets,the proportion of institutional ownership has a positive impact on the efficiency of China’s commercial banks.This paper puts forward policy suggestions as follows:China should reasonably promote the process of China’s financial marketization combine its national conditions;banking industry should actively use the process of financial marketization to promote its efficiency,seize the opportunity,actively learning,pay attention to the cultivation of talents,improve their competitiveness;the government should pay attention to perfecting the supervision system in the process of marketization.