Research On The Impacts Of FDI On China's Bank Efficiency

In the last more than 10 years,the opening of foreign policy and the rapid growth of the economy have introduced a large number of foreign funds with FDI as the main form of our country.In 2014,China surpassed the US for the first time and became the largest FDI inflow country in the world.At the same time,FDI flow is also shifting from manufacturing to the rational structure of service industry.FDI has an important and profound impact on China's economic development.Since 2006,China's banking industry has entered a comprehensive and open pattern for more than ten years.With the continuous opening of China's financial market and the continuous improvement of the financial development,the banking industry has become one of the main directions of FDI inflow.Based on the national and provincial panel data of 1995-2015 years in China,this paper studies the impact of FDI on bank efficiency and scale from the perspective of quality and quantity from the perspective of stochastic frontier model and GMM method.The results show that:(1)the national FDI has a positive effect on the efficiency of the bank.The introduction of FDI will increase the capital allocation of our country,stimulate investment and promote the outward expansion of the financial institutions represented by the bank.FDI on banking service put forward higher requirements to stimulate the banking business philosophy to improve,improve the management level and efficiency of the banking industry has the effect of promoting the banking industry;(2)FDI on non efficiency influence bank efficiency,market competition is not sufficient;(3)the provincial panel data show that FDI has a positive impact the size of bank loans.In the characteristics of ownership,the efficiency of foreign banks is higher than most of the domestic banks.The rate of non-performing loans has a significant negative impact on the efficiency of the bank.FDI bank efficiency loan scale finance development.