Research On The Technological Progress Of Joint-stock Commercial Bank Based On Total Factor Productivity

With the end of the transition period that the opening up of Chinese finacial industry, the domestic banking sector has been fully open to foreign financial institutions and the foreign banks have been got the fully equal market dominant position with domistic commercial banks.Also,our four large state-owned commercial banks have successfully completed the shareholding reform. Since entering the 21st century, the domestic integrated financial environment has changed greatly, so joint-stock commercial banks have to face the enormous difficulties and the growing competitive pressures and financial risks. Therefore, it is of great significance that study the competitiveness of joint-stock commercial banks and analysis their productivity and find the factors affecting their productivity and thus provide for the future reform of decision-making.On the account of the review of a large number of domestic and international researches on total factor productivity and its application in the banking literature, Solow residual value method which is based on the aggregate production is employed in this paper to estimate the total factor productivity change of the 10 joint-stock commercial banks in 2000-2007 and its contribution to output. Next the paper has analyzed the relevant factor which can influence the total factor productivity of the joint-stock banks. The results show that the TFP growth of joint-stock bands is negative in 2000 and 2001 and it is steady growth in the next few years, the average growth rate of TFP is 21.3% in eight years and the contribution to output nearly 50%. In terms of the impact factors of joint-stock banks'TFP, the risk management, the quality of human resources and the main business income can significantly positively impact the TFP, but the level of the intermediary services can't impact TFP significantly. Based on the empirical analysis, the paper has proposed some policy recommendations, such as improve risk management, strengthening of human resources management and vigorously developing intermediary services.