Study On The Impacts Of The Foreign Banks' Entry To The Total Factor Productivity Of Commercial Banks In China

With the international capital market globalization,the liberalization of financial markets,the internationalization of the banking industry is also increasing.The banking system plays a very important role in a country's economic structure,and the entry of foreign banks will have an impact on the local banking market through various channels.In terms of China,the banking industry has entered a comprehensive deepening of the reform,and it is urgent to promote the perfection and optimization of the banking system.The foreign banks-funded corporate governance structure is good and the technological advantages are obvious.The product research and development and business innovation ability are strong,this forces our business Banks continue to improve their management and improve their competitiveness,thus,that bring new opportunities for China's financial system reform.But also bring great challenges.Therefore,the paper studies the influence of foreign banks on the total factor productivity of China's commercial banks,and puts forward policy suggestions to promote the further opening up,reform and development of China's banking industry,thus promoting the improvement of the efficiency of commercial banks in China and helping the healthy and stable development of China's commercial banks.Based on the theory of spillover effect,this paper analyzes the influence mechanism of foreign banks on the total factor productivity of China's commercial banks,and analyzes the influence of foreign banks on the total factor productivity of different types of commercial banks.First of all,this article selected 34 commercial banks in China related data from 2004 to 2015.Secondly,the DEA-Malmquist model is used to measure the total factor productivity of 34 commercial banks in China.The results show that the state-owned commercial banks play the least role in the growth of the total factor productivity of the commercial banks in the whole factor productivity of China's commercial banks with an average annual 1.41% growth rate.The total factor productivity of the joint-stock commercial banks and urban commercial banks Respectively,with an average annual 1.20%,1.50% increase in the entire industry,the total factor productivity growth has played a large part of the role.From the point of view of changing trend,the state-owned commercial banks reflect the obvious “catch-up effect”,and the gap between the joint-stock commercial banks and the city commercial banks is narrowing,and the boundary of the three types ofbanks tends to converge.On this basis,this paper chooses 34 commercial banks data from 2004 to 2015,selects the stochastic effect model by Hausman test to study the influence of foreign banks on the total factor productivity of China's commercial banks,and adopts the group regression strategy to study the different ownership banks.The results show that: 1.The entry of foreign banks has a positive effect on the total factor productivity of commercial banks in China.2.The impact of foreign banks on the total factor productivity of China's urban commercial banks is the best,followed by the joint-stock banks and the state-owned commercial banks.Therefore,it is necessary to increase the introduction of foreign banks,standardize their orderly competition,deepen the reform of China's banking industry,in order to better play foreign banks to China's commercial banks to the total factor productivity positive impact.