Research on the Growth of TFP of the Urban Commercial Banks Based on the Malmquist productivity index

Abstract

This paper measures the total factor productivity (TFP) growth of 40 urban commercial banks based on the Malmquist productivity index. On this basis, the first - order difference GMM is used to estimate the influencing factors of the TFP of urban commercial banks. This paper show that the technological progress during the sample period has promoted the overall upward trend of the TFP of China’s commercial banks. And the rate of return on assets has a significant positive impact on the TFP, and the deposit and loan ratio has a significant negative impact on TFP. At the same time, we have also concluded that the factors affecting the TFP of the three major regions in East, West and West are different.