Research On Total Factor Productivity Of City Commercial Banks

On November,2017,the Vice Chairman of the China Banking Regulatory Commission,Wang Zhaoxing,stated at the 2017 Annual Meeting of the City and Commerce Bank that the city commercial banks have thoroughly implemented the spirit of the 19th and 5th financial conferences of the party and actively implemented various financial regulatory policies,taking root in the local economy,Combining local economic characteristics,it has made outstanding contributions to providing financial support for the local economic development of small and micro enterprises.Urban commercial banks have strengthened their risk management while expanding their scale,and actively carried out market-oriented reform and development.After 20 years of development,the city commercial banks(hereinafter referred to as "city commercial banks")have become an important part of China's economic and financial system,and the share of banking financial institutions in China is becoming heavier.By the end of 2016,the number of city commercial banks in China has reached 134,and the scale of assets reached 2.847 billion yuan,a year-on-year increase of 23.1%.The fastest growth among all types of financial institutions,and 7.3 percentage points higher than the average banking industry,but from assets In terms of scale,the total assets of large commercial banks,joint-stock commercial banks,and city commercial banks were 86.6 trillion yuan,43.5 trillion yuan,and 28.2 trillion yuan respectively,accounting for 37.3%,18.7%,and 12.5%respectively.Therefore,we can see that although there is a certain gap between the total size of assets and state-owned banks and joint-stock banks,they are in a leading position in the growth rate of assets and the number of banks,and the future development cannot be overlooked.Since the development of China's urban commercial banks is so rapid,does the corresponding efficiency and total factor productivity rate continue to increase?After sorting out domestic and foreign documents,it is found that the current domestic and foreign literature on the level of bank efficiency and total factor productivity is mainly concentrated on the research of large-scale commercial banks or joint-stock commercial banks.There are few studies on the efficiency of urban commercial banks and the level of total factor productivity.There are few studies specifically targeting regional city firms.Due to the vast territory of China,the gap between the economic development in the south and the north,east and west is relatively large,and the national research conclusions are not necessarily suitable for regional economic and financial performance.Therefore,it is necessary to study only the regions or provinces.Zhejiang Province is a major economic province along the eastern coast of China.It has made outstanding contributions to China's economic development.After nearly two decades of development,Zhejiang Province has established a total of 12 city firms,ranking second only to Shandong Province.second.Zhejiang City Commercial Bank took root in the local economy and made outstanding contributions to the development of local economy and the financial status of local micro,small and micro enterprises.However,how to raise its productivity level and how to increase productivity to highlight its own advantages are still problems that need to be solved urgently.Therefore,this paper chooses the total factor productivity and influencing factors of city commercial banks in Zhejiang Province.This paper takes Zhejiang province as a sample area,estimates and decomposes the total factor productivity index of 10 city commercial banks in Zhejiang province,analyzes the reasons for the change of total factor productivity,and empirically analyzes the internal influence factors of total factor productivity index.First of all,this article reviews domestic and foreign literature on the calculation of bank total factor productivity.After sorting out the existing theoretical research,we construct appropriate models and corresponding input-output indicators as the basis for this study,and then develop the urban commercial banks in China.The status quo and the status of economic development in Zhejiang Province are analyzed.Secondly,descriptive statistical analysis of the status quo of the development of Zhejiang City Commercial Bank is conducted using the annual report of each bank and the data of the input and output of city commercial banks in the 2012-2016 Zhejiang Financial Yearbook.The parameter DEA model and Malmquist index method calculate the total factor productivity index of the sample bank in 2012-2016 and decompose it into efficiency technology index,scale efficiency,pure technical efficiency and technology progress index,and conduct comparative analysis with state-owned banks and joint-stock banks;Finally,using the panel data and the Tobit model,an empirical analysis of the bank's internal factors affecting the TFP index yields the following conclusions:First,for the sample as a whole,from 2012 to 2016,the TFP of Zhejiang City Commercial Bank showed a trend of first decrease and then increase,with an average annual growth rate of 0.13%,which is comparable to that of state-owned banks and joint-stock banks.Outgoing:During the inspection period,CFE has the highest total factor productivity and the highest growth rate,with an average annual growth rate of 0.13%.The state-owned banks' total factor productivity shows a slight increase,with an average annual growth rate of only 0.1%,while joint-stock banks show a declining trend with an average annual decline.4.83%.Secondly,second,for each sample bank,there is a big difference between the total factor productivity of the 10 sample banks,6 city commercial banks have achieved total factor productivity growth,and 4 city firms have total factor productivity.The recession.Thirdly,of the factors affecting total factor productivity in Zhejiang Province,the asset allocation is significant at the 1%level,and is positively correlated with the TFP;the size of the bank is significant at the 5%level,and the bank Growth is significant at the 1%level,both of which are positively correlated with the TFP;while innovation capacity is significant at the 10%level,also positively correlated with the TFP;besides,there is sufficient capital.The rate did not pass the test of significance,but it showed a negative correlation with total factor productivity.Based on the above conclusions,the paper proposes the following recommendations:First,we must actively play our own advantages and reasonably control the scale;Second,we must vigorously develop intermediary businesses and improve our own innovation capabilities.Third,we must strengthen risk management and accelerate the transformation and development.