| China’s banking sector reform has been opened since 1978,the gradually widening and in-depth reform process has continued to the present.China’s commercial banks,with unprecedented opportunities,also increasingly affected by the impact of world economic fluctuations.The global financial crisis,which originated in Wall Street and spread rapidly to the world in 2007,is still unsettled.While China’s commercial banks,which has been on focus in the global banking industry because of its outstanding performance since the crisis,has plunged itself into non-performing loans since 2012.To calculate the changes in the efficiency and total factor productivity of China’s commercial banks,to explore the elements that lead to changes in total factor productivity and analyze the background causes of their changes,so as to evaluate the impact of commercial banks’ reform and macroeconomic fluctuations on their efficiency and to indicate the direction of further reform on the banking industry,is of theoretical and practical importance at this stage.This paper chooses the financial data of 14 commercial banks in China under the framework of DEA efficiency evaluation,and adopts the ERBDDM(Enhanced Russell-based Directional Distance Measure)model to measure the efficiency of these commercial banks under the constraint of non-performing loans.On this basis,the GML(Global Malmquist-Luenberger)index is used to measure the total factor productivity and its decomposition of the bank,including the traditional method of decomposition according to technique and another innovative angle to decompose by output.Except for nonperforming loans,this paper further considers the impact of interest loans on the total factor productivity of commercial banks.This paper also puts forward the concrete meaning of efficiency improvements and technological progress,the two components of the total factor productivity,in the performance evaluation on commercial banking,which makes up the deficiency of the existing literature in the connotation analysis.By comparing the empirical results according to the overall level of banks,the group of state-owned and joint-stock banks,as well as the single bank level.This paper draws the following conclusions: Firstly,the sources of the total factor productivity growth of state-owned banks and joint-stock banks are the increase in loan growth and profit growth respectively,indicating that state-owned banks are superior in their size and monopoly position and joint-stock banks in the management and profitability;Secondly,joint-stock banks are more vulnerable to the changes of economic environment;The third is that the bad loan problem is the source of the retrogression of China’s commercial banks’ total factor productivity.The fourth is that the technological progress is the main source of the banks’ total factor productivity changes.The changes of technological progress value mainly reflects the influence of the economic development and the corresponding macroeconomic policies in China and abroad on the performance of China’s commercial banks.Finally,the government-led market reforms of state-owned banks have promoted their efficiency improvement and total factor productivity growth.This paper puts forward the following policy recommendations: First of all,the government regulators should adhere to the implementation of sound and neutral monetary policy,enhance the relevance and effectiveness of regulations,pay more attention to macro and prudent management to prevent systemic risks.Provide necessary policies to support bank transformation,help them to play important roles in promoting economic restructuring and transformation.Secondly,the state-owned banks should continue to deepen the reform and improve the corporate governance.The joint-stock banks should pay more attention to credit checks and risk control.All commercial banks should actively develop new business on their own particular strengths and develop new technologies to upgrade service. |
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