Research on the Impacts of Credit Industyr Structure on the Total Factor Productivity of China’s Listed Commercial Banks
|School||Zhejiang Technology and Business University|
|Keywords||Bank efficiency Risks Undesired SBM MMLPI Credit sector allocation|
Commercial banks are the important part of the financial system of a country or region, and its operational status will directly affect the configuration of the social surplus funds, thereby affecting the overall economic growth and development. At present, interest income is still the main source income for China’s commercial banks, and the economic benefits of commercial banks in the final analysis depends on the economic benefits of the object that invested funds, so the distribution of credit funds largely determines by the level of quality of credit assets, and at last affect the efficiency of the bank. Goldman Sachs report also showed that in2013, the total size of the credit of China may increase and will be240percent of GDP, and the increase will accelerate, which means that the power of credit to promote the economic growth is being weakened, in other words, it implies that a large number of social financing are actually not put in the real economy. China’s credit bubble is rare in the history, In addition, the "money shortage" of the bank in the first half of2013also illustrate that China’s bank credit grow too fast and the credit structure is irrational.The paper applies undesired output SBM model which based on the risk factors and common border Malmquist-Luenberge Productivity Index to measure efficiency and total factor productivity of China’s listed16commercial banks over the period2007to2012, and the outcome: Efficiency of listed commercial banks show an upward trend after the first drop with the differentials narrowing, and differences of efficiency were widened significantly in2008, and the city commercial banks is the largest fluctuated; From category, the banks of the highest efficiency is state-owned, and the performance of scale efficiency is invalid. Technology gap ratio first decrease and then increase and productivity show substantially "M" type, and the trend is rising, and the overall differentials are narrowing. On this basis, accumulative MMLPI as the dependent variable and the proportion of the larger six industries loans as the independent variable, study the credit sector allocation’s effect on the banks’productivity by panel regression,and the major conclusions are as follows:credit industry concentration of China is among the middle market concentration and shows an upward trend,and at the same time it changes inversely with MMLPI;wholesale and retail trade and productivity exists significant positive relationship,but electricity, heat, gas and water supply and the performance of the real estate industry show a significant negative relationship, in addition, water conservancy, environment and public facilities, manufacturing and personal loans have no significant effect on the efficiency of Chinese commercial banks.Based on the above analysis, the following policy recommendations are as follows:streamlining of state-owned banks, joint-stock banks to adjust the size of the structure, city commercial banks to expand the reasonable scale; reduce non-performing loans, strengthen credit risk management; strengthen the training and management of financial information talents, expanding security intelligence electronic payment and online banking platform; establish clear regulatory requirements about industry concentration risk; concerned about the economic situation and strictly control loans to industries such as real estate.