The Impact Of Rmb Internationalization On The Efficiency Of Chinese Commercial Banks

Since the 18th National Congress of the Communist Party of China(CPC),China’s economy has developed rapidly and its integration into the global economy has been deepening.In this context,the launch of the pilot cross-border RMB trade settlement in 2009 marked the beginning of the internationalization of RMB.In2015,the International Monetary Fund decided to include RMB in the SDR currency basket,and the international community gradually increased the recognition of RMB.As a result,RMB has gradually become an important currency in global trade activities.This process is called RMB internationalization.At present,RMB has become one of the important components of the global payment currency system and has an increasing impact on the world economy.As a major supporter and immediate contributor of RMB internationalization,China’s banking industry has also ushered in a golden development period in international competition,opening a new chapter for China’s banking industry to promote the process of globalization.The efficiency of commercial banks is an important manifestation of the competitive advantages of banks,which is of great benefit to preventing financial risks and realizing sustainable development.In this context,to investigate the consequences of RMB internationalization on the performance of commercial banks plays a realistic role.Under the background of RMB internationalization,Chinese commercial banks need to explore an effective strategic mode to improve their efficiency and technical level.Based on this,this paper takes Chinese commercial banks as the research object,brings "banking openness" into the research framework,and discusses the impact of RMB internationalization on the total factor productivity and decomposition efficiency of Chinese commercial banks.First of all,this paper describes the related domestic and foreign literature and basic theories.Secondly,by using DEA-Malmquist index,net fixed assets,number of employees and total deposits were selected as input indicators,and interest income,net profit and total loans were taken as output variables to measure the total factor productivity of 145 Chinese commercial banks during 2011-2021,and banking openness was taken as the moderating variable,this paper makes an empirical study on the influence of RMB internationalization on the efficiency of Chinese commercial banks,and considers the heterogeneity of Chinese commercial banks by sample,and the following conclusions are drawn:(1)From 2011 to 2021,the total factor productivity of Chinese commercial banks shows a gradual increase trend,it is mainly driven by the efficiency of technological progress.(2)RMB internationalization has a positive effect on the total factor productivity of Chinese commercial banks.(3)The opening-up of Chinese banking industry will significantly enhance the promotion effect of RMB internationalization on the total factor productivity of Chinese commercial banks.(4)The promotion effect of RMB internationalization on commercial banks with different equity properties and different business scales is heterogeneous.Finally,based on the research results,this paper puts forward some suggestions to further improve the efficiency of Chinese commercial banks.