The Establishment And Empirical Research On Evaluation Model Of Commercial Bank's Financial Performance

General financial performance evaluation system is not suitable to the commercial bank because of its unique business and asset-liability structure. The bank in China confirmed its position as the financial enterprise just few years ago companied by some performance evaluation systems designed for it. However, all these systems take either the comptroller or the operator as the principal user ignoring the convenience of the small stockholders. With the reorganized and listed of state holding banks and the opening of Chinese financial market, it has been an urgent problem to establish a financial performance evaluation system for the small stockholders. The article takes the commercial bank' s financial performance as the research object, does a great deal of research on the problems of main body, index system and model establishment to form a independent idea about the evaluation system on commercial bank' s financial performance.The article uses the method of factor analysis and factor recover to build the evaluation model. The model can pass the Pearson and Spearman correlation test, which indicates the model is effective and steady. The article points out the model is short in some aspects including index system, sample capacity and economics meaning, however, the article also give advices on the modification such as sample enlargement, combination of the model analysis and the index analysis, inviting market value index and set a evaluation basis. Based on the model, the article does a empirical research on the financial performance of the commercial banksin China assisted by the index analysis. In the main research of the difference between stock banks and state holding banks, it is noticed that the main reason resulting in the state holding banks' low incoming is the bad ability in running asset. In details, the state holding bands excessively dependent on loan to make earnings, it will result in a lax limitation to the loan provision which bring a high level of nonperforming assets, with the exaggeration causing by a high level of left unused assets, the promoting deposit will make the incoming of the bank decreasing.Through the empirical analysis, the article gives a depiction on the validity and suitability of the model and reminds the model should be modified circling the complementing of the index system.