Astudyontheimpactof Capital Constraintson Total Fctora Productivityof Commercial Banks

Total factor productivity(TFP)of commercial banks is one of the most important indicators to reflect the competitiveness of banks.As the main body of modern financial industry and the main force of national economic development,the change of total factor productivity(TFP)of commercial banks will not only affect the development efficiency of financial industry,but also have a great influence on the transmission and implementation of a country’s economic policy.Therefore,it is very important to study the total factor productivity of commercial banks.In order to prevent the bank risk,the state financial supervision department has been taking the international bank supervision standard as the reference,unceasingly consummates the bank supervision system,strengthens the bank capital restriction.The regulatory departments restrict the capital of commercial banks Whether the capital constraint will affect the total factor productivity of the commercial bank in our country,and how the capital constraint will affect the total factor productivity of the commercial bank,if there exists the influence on the capital constraint,the more strict the development of the commercial bank,the more strict the development of the commercial bank.In order to pursue higher total factor productivity(TFP),China’s commercial banks should maintain the most appropriate level of capital adequacy,and these problems need to be continuously explored and studied.Therefore,it is of theoretical and practical significance to study the influence of capital constraints on total factor productivity of commercial banks.In this paper,the literatures and theories about capital constraints and total factor productivity of banks at home and abroad are sorted out,and the influence mechanism of capital constraints on total factor productivity of commercial banks is analyzed.Combined with the data of 240 commercial banks in China from 2008 to 2017,the total factor productivity(TFP)of 240 banks from 2009 to 2017 is calculated by using the DEA-Malquist index of data Envelopment Analysis(DEA),and it is decomposed and analyzed.After that,the capital adequacy ratio is selected as the quantitative constraint index of bank capital,and the ratio of core capital to total capital is used as the index of bank capital quality constraint.The panel threshold model with capital constraint index as threshold variable is used to regression the whole sample and the divided proton sample.According to the regression results,the following conclusions are drawn: the threshold effect test shows that the capital adequacy ratio has a nonlinear effect on the total factor productivity of commercial banks,while the influence of the proportion of core capital on the total factor productivity has no threshold effect;The influence of capital adequacy ratio of commercial banks on total factor productivity of banks is heterogeneous.As for banks as a whole,the positive impact on total factor productivity of commercial banks will be weakened or even become negative,with the increasing of capital adequacy ratio of banksas a whole.That is,there is double threshold effect;And for state-owned banks,And in the case of joint-stock silver,when the capital adequacy ratio is raised to the threshold value,its influence on total factor productivity changes from positive to positive,that is,there is a single threshold effect.The effect of capital adequacy ratio of city commercial bank and agricultural commercial bank on total factor productivity has double threshold effect,and the increase of core capital ratio will restrain the growth of total factor productivity of commercial bank,whether it is the whole bank or the bank of different nature,and the capital adequacy ratio of city commercial bank and agricultural commercial bank has double threshold effect on the total factor productivity of commercial bank.To sum up,from the perspective of bank development,its capital constraints are not the stricter the better.Therefore,this paper puts forward the following suggestions to the supervision department: the supervision department can comprehensively consider the difference of the relationship between the supervision index and the development situation of different banks,and carry on the flexible classification supervision;It is suggested that regulators should pay more attention to the capital quality of commercial banks,develop more complex and rigorous indicators to regulate them,and suggest that regulators should pay more attention to functional supervision to make regulation more comprehensive.In addition,the following suggestions are put forward to the banks: first,the capital constraint standards established by the regulatory authorities are only the lowest risk proposed by the regulatory authorities.It is required that commercial banks should strengthen capital management on the basis of meeting the minimum requirements in order to promote the steady development of banks,and the second is to suggest that banks should improve their own capital replenishment methods.Third,it is suggested that banks improve the quality of assets and reduce the proportion of risky assets.