The Performance Evaluation Analysis Of Chinese Commercial Banks

Since the beginning of reform and opening up in 1978, Chinese commercial banks have made significant progress in the development. First, the reform of the shareholding system of state-owned commercial banks has made great progress. China Construction Bank, Bank of China and Industrial and Commercial bank have become listed companies successfully. This makes these banks' asset quality and management standards have been greatly improved. Second, the joint-stock commercial banks are developing rapidly, and the number of the joint-stock commercial banks has increased rapidly, and the quality of their assets, the operational efficiency has improved significantly. The joint-stock commercial banks have become an important component of Chinese commercial bank system.By the end of 2006 with the full opening Chinese financial industry to foreign investment, Chinese commercial banks face a quick increase in competition. Meanwhile the RMB business opening to foreign banks made Chinese domestic commercial banks reduce the competitive advantage. And the quality of assets of Chinese commercial banks, especially the level of non-performing loans, is worse than the international advanced commercial banks.In such circumstances, it is necessary for Chinese commercial banks to improve their own performance management level, and to raise their own competitiveness. In this context, it is necessary for us to find the reasons of the behindhand performance level of our commercial banks through analyzing the situation of the performance of Chinese commercial banks. This kind of study has not only theoretical value but also practical value for the present and future development of Chinese commercial banks.After reviewing several major domestic performance evaluation methods, this paper provided an index system by referring to the enterprise performance evaluation system issued by the Chinese Ministry of Finance, and other index system raised by previous scholars and experts. Furthermore, this paper made use of this system to evaluate the performance of nine Chinese domestic commercial banks, and raised some advice based on the analysis results to help Chinese commercial banks improve their performance.This paper has such contributions as:First, this paper established the appropriate commercial banks'Performance Evaluation System. After reviewing the domestic and foreign methods of commercial banks'performance evaluation, this paper provided an performance evaluation index system by referring to the enterprise performance evaluation system issued by the Chinese Ministry of Finance, and other index system raised by Previous scholars and experts. Furthermore, this paper made use of this system to evaluate the performance of nine Chinese domestic commercial banks, and raised some advice based on the analysis results to help Chinese commercial banks improve their performance.Second, this paper use the latest data, the data of 2004,2005 , to do performance evaluation. These data mainly come from the sample banks'annual report, the financial yearbook and authoritative magazines.Third, this paper applies the electronic spreadsheet modeling method and the VBA which is a kind of development tool of Microsoft Office Excel to establish a performance evaluation model which is used to analyze the sample banks'Performance. The model is based on the principle of the enterprise performance evaluation method which was raised by the Chinese Ministry of Finance, including index criterion module, basic indexes and amendatory indexes module and calculation module of total score of performance. After the model was established, an accuracy test of the model was done to ensure the accuracy of the model further. Then the sample banks'index data of 2004, 2005 was load into the performance evaluation model, and the results came.Finally, this paper evaluated the performance results of the sample banks, and then some suggestions, according to the results, were given to improve performance and to promote the development of Chinese commercial banks.