Research Of Listed Commercial Banks’ Total Factor Productivity And Its Influencing Factors In China

The traditional view holds that commercial banks face the same market and receive the same regulation in the similar external economic environment, so the difference of efficiency between the banks of the same country should not be too much. However with the increasing degree of financial liberalization, the continuous relaxation of bank regulation and plenty of foreign banks flooding into the domestic, the financial environment tremendous changes have taken place in China. A series of factors make the operation and development pressure increasing on the banking sector, the efficiency of different banks may gradually distance with each other. What about the efficiency of commercial banks in our country and which factors lead to the differences in efficiency of different banks? Therefore, the paper selected "Research of listed commercial banks’ total factor productivity and its influencing factors in China" as the topic, to analyze the impact factors on the efficiency of different banks.First of all, the paper do a theoretical overview of the bank efficiency and total factor productivity as well as the related research methods. The data envelopment analysis method is used to study the TFP of domestic commercial banks. Secondly, the analysis of total factor productivity based on the data envelopment analysis. The paper research total factor productivity of China’s 16 listed commercial banks from 2010 to 2014,using the nonparametric DEA model of the Malmquist productivity index method. Then, multiple regression analysis is made on the factors that may affect the total factor productivity of banks. TFP of commercial banks is the dependent variable and those factors are independent variables. The results showed that the quality of employees, the level of technology, risk management and the service structure are the main factors which affect the efficiency of commercial banks in China. Finally, put forward the countermeasures and suggestions which are beneficial to the growth of commercial banks’ efficiency in China based on the above findings.Through the research, the paper analyze the effect of several factors on bank’s TFP and put forward some countermeasures that could help to improve the efficiency of commercial banks. It has some significance on enhance the competitiveness of commercial banks in China, the sustainable development and innovation of banks.