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Financial Analysis And Methods Of Improvement On Operation Of Our Internal Commercial Banks

Posted on:2004-04-23Degree:MasterType:Thesis
Country:ChinaCandidate:Y M XuFull Text:PDF
GTID:2156360092991418Subject:Finance
Abstract/Summary:PDF Full Text Request
As our country became the member of WTO, all trades and professions, acquiring the opportunity of development, are demanded objectively to make reformation according to the international practice. Under the environment, the marketable reformation of financial system, which has been regarded as the core of economy, is pressing. Facing with the challenge of foreign financial companies, we need to bring up self-controlling financial institutions effectively to perfect our financial market, to improve the capacity of financial macro-adjustment and to reinforce the supervision further. This article is intended to acquire some utilitarian conclusions to serve for the demand of banking reformation so that I studied the operation condition of our internal commercial banks from the micro-view. My investigation was mainly based on the calculating financial index according to three principles, which are liquidity, security and profitability.The structure of this essay is made up of four pats. The first part is the preface. The second part is to introduce relative financial theories, which include financial indexes used to evaluate the enforcement of three principles, index model of risk measurement and theory of assets & liabilities. The third part is made up of an empirical study on financial condition of our internal commercial banks. The intention of this part is to find the insufficiency in management of our commercial bank, espial of state-owned banks, by comparison. It is completed through the calculation of index according to the order of liquidity, security and profitability. During the analysis, I quoted the model of Risk Index, which is able to reflect the degree of credit risk, interest risk and liquidity risk of bank in full view only by using the index of ROA and EM with simple statistics. The modern of RI is better than such methods that are to analyze different risks existing in the operation of bank separately or to require being support by amount of data. It is useful for banks to judge they degree of risk. The fourth part is advising part in which I give some proper suggestions on how to better the financial quality, to improve the capability of management, and to promote the competitive ability of our internal commercial banks in the international market.By dealing with the data of researching in the third part, I have found several universal problems existing in our banks as follows:Firstly, it refers to problems in liquidity. One is that the utilizing efficiency of commercial banks' assets is low although they maintain the quantity of high-liquidity assets. The reason that the realized cash flow in banks is less than the number showing on books is that part of credit assets of banks is made of re-borrowing which is used to pay off debits or interests of loan. Another is that the D/L is higher but LTDR (or BTDR) is lower in the state-owned commercial banks compared to limited commercial banks. It could get the conclusion that long-term credit constitute the most of assets, theefficiency in complying the proportion management of A-L is low and it is short of insensible will to expand the market in the state-owned commercial banks from the phenomenon. The third one is that financial condition in the limited commercial banks, especial four listing banks, is relatively fine from the result of index. This is mostly due to that they emphasize to comply the ratio management of A-L. The last one is the state-owned commercial banks not dare to put their deposit on loan for small-scale companies because of being afraid of the accumulation of risk.Secondly, it is discovered that the degree of our commercial banks is higher than foreign banks. The key reason is that our banks are short of efficient management to control and decrease the operation risk. Most of investigation for the credit of customs in our banks is not done substantially although they have drowned up many rules on censoring of credit.Thirdly, it is showing the problems in profitability of our banks. One is that the profit earni...
Keywords/Search Tags:Financial analysis, Liquidity, Security, Profitability, Index of RI
PDF Full Text Request
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