The Study On Total Factor Productivity And Its Influencing Factors Of Chinese Commercial Banks

In recent years,with in-depth advancing of China's interest rate marketization and financial deepening reform,the operating environment of commercial banks become more and more complex.The government relaxes entry mechanisms of banking,more and more private banks begin to set up.With the rapid rise of new generation of Internet technology such as cloud computing and big data,Internet finance such as the third party payment,Ali-loan,mobile payments is developing rapidly.All of these have brought the huge challenge to commercial bank's traditional business model and profitability.In such complex and fiercely competitive environment,the key to the sustainable development of Chinese commercial banks is to improve their competitiveness.And efficiency is the concentrated reflection of banking competitiveness.Therefore,it have important theoretical meaning and realistic meaning to the future development of Chinese banking industry to research the efficiency of commercial banks and its influencing factors.In this paper,we use DEA-Malinquist index model and Panel Data model to do the empirical research on total factor productivity and its influencing factors of Chinese commercial banks.Put forward some corresponding policy recommendations on this basis.More details are as follows.(1)Review and summarize the related theory of efficiency and total factor productivity;expound the measurement of total factor productivity,including parametric and nonparametric method;introduce the DEA model and Malmquist index method based on DEA model.(2)Based on 14 commercial banks in China from 2007 to 2013,use DEA-Malmquist index model to do the empirical analysis about total factor productivity and its decomposition,respectively from three perspective which are the banking sector as a whole,ownership and each individual bank.The empirical results show that the total factor productivity index on average of the commercial banks during the period of investigation is greater than 1.It is improved and the improvement thanks to the technological progress.Total factor productivity of the joint-stock commercial banks exceeds the state-owned commercial banks.(3)Do the empirical analysis about influencing factors of total factor productivity of Chinese commercial banks.Specific process is to use the total factor productivity index measured before to be as dependent variable,and use seven factors to be as independent variables,including GDP growth rate,M2 growth rate,Internet finance's assets growth rate,market concentration,innovation,return on assets and cost on assets.Establish a fixed effects regression model and do the empirical analysis.The empirical results show that the market concentration and cost on assets have significantly negative influence on the total factor productivity,on which five other factors have significantly positive influence.(4)Give some advice to improve total factor productivity of Chinese commercial banks,including improve the ability of cost control,reduce the banks'cost on assets;promote technological progress of the banking,improve the innovation ability of the bank;promote the diversified development,expand the bank's business model.