With the continuous reform and deregulation of Chinese Banking, Chinese commercial banking has gradually changed into the phase in which state-owned commercial banks dominate, and co-exist and co-compete with stock commercial banks and foreign banks from original phase of state-owned commercial banks monopolizing the whole industry. After entering WTO, the deadline of protecting domestic banks approaches alongside with the integration of global economy, domestic banks will face drastic competition with big bank groups from western developed countries. In order to provide decision basis for future reform, it is significative to study the competitiveness of Chinese commercial banks, analyze productive efficiency and their change of domestic banks, correctly evaluate the performance of Chinese commercial banks; and compare the performance of domestic banks with Euramerican and examine the gap between them and search for the reason.

Productive efficiency is the kernel of the competitiveness in commercial banking, and the base on which Chinese commercial banks compete with foreign banks in the future. Total Factor Productivity growth is the important source to promote the competitiveness of the whole industry, in addition, the source of growth could be found by the decomposed factors of Total Factor Productivity. So this book mainly investigates the performance of Chinese commercial banks from two aspects of productive efficiency and Total Factor Productivity.

4.        The Total Factor Productivity (TFP) change in Chinese commercial banking is firstly studied ,using Data Envelopment Analysis (DEA) and Malmquist index. At first fixed asset stock of commercial banks is estimated by Perpetual Inventory Approach, then Total Factor Productivity indices based on Malmquist index is calculated. Total Factor Productivity change in Chinese commercial banking is analyzed, and decomposed into technical progress, technical efficiency change and scale efficiency change. The contribution to TFP growth is isolated. In addition, the TFP growth is compared separately between state-owned commercial banks and stock commercial banks.