한국생산성학회

This study analyzed the relationship between productivity change and market power in 12 commercial banks in 2010-2017. We analyzed the change in productivity and divided it into efficiency change and technology change, and analyzed how productivity, efficiency and technology change are related to market power, and analyzed the relationship with determinants. The results can be summarized as follows. First, there was a positive relationship between productivity change and market power. In other words, productivity decreases as market power decreases. According to the additional analysis of these causes, the relationship between efficiency change and market power has a negative relationship, but the relationship between technology change and market power has a positive relationship. In the case of efficiency change, it was analyzed similarly to the existing research results. As market dominance weakens, competition intensifies, improving the inefficiency of individual banks. In the case of technological change, the lower market power means a negative effect on technological progress, which is the opposite of the change in efficiency. This may mean that if the competition in the existing market is fierce, we can focus on the short-term results rather than investing in long-term technological developments and advancements such as IT and financial systems. Taken together, the entry into foreign capital banks can increase the efficiency of China's banking industry by improving inefficiency, but it can mean that productivity is reduced by declining technological changes. Second, the capital asset ratio (CAR) used as an indicator of capital stability was positively related to efficiency change and negatively related to technological change. Increasing CAR seems to have a positive effect on efficiency improvement, but has a negative impact on technological progress, indicating that an appropriate level of indicator management is needed. Third, ownership structure has a positive effect on technological change. This may indicate that state-owned commercial banks can invest in technology development and development rather than competition. On the other hand, it has a negative effect on the efficiency change, which may mean that the state-owned commercial bank is useful for technological change but internal inefficiency may occur.