Apprisal Of Chinese Commercial Banks' Operation Performance Commprehensive Evaluation

With the development of China market economy, the Finance has become one of important parts of the modern economy. Healthy and harmonious economical development of a country needs one steady and effectient financial system .The commercial banks as a major part of fianacial system play an important role in the social economy life.After several hundreds of years developent, the operations of overseas commercial banks have been mature. Espacially, the commercial banks of America, Europe and Japan run better than banks of other fields. The domestic commercial banks began developing lately. With the reformation of banking industry, the Chinese commercial banks set up operation mechanism gradually. But compared to the foreign advanced commercial banks, there are great differences between them, such as the scale of assets, the quality of assets, earning power and so on.According to the promise when China bidded for enter WTO, the Chinese financial market will open to all the foreign banks after 11th of December in 2006, all our society faces the challenges of foreign enterprises entering Chinese market and the new trade rules. In Chinese commercial bank industry, competition will be more drastic between home commercial banks and foreign commercial banks.Business performance is the main component of competence of commercial bank. Business performance competition will be the centralized reflection of the competition between Chinese banks and foreign banks. It is a focus question of studying in recent years all the time to evaluate the business performance about commercial banks in our country. A set of scientific evaluation on commercial bank's business performance is favorable for prediction and control of the bank's risks, the comparison of management status among different banks, and estabishment of reasonable competion mechanism. It will help maintain stability of the finacial system.To develop the research of synthetical evaluation on commercial bank's business performance in China, based on a lot of Chinese and foreign documentaries, directing by statistics, finance, accounting and econometric, the paper study this problem with theoretical and real research.Based on the documentaries, the paper define the commercial bank's opration performance clearly at first.secondly, I expounded the relevant study about evaluation theories and methods at home and abroad, including: CAEL compositor methods, CAMEL evluation system, Moody's rating system, Standard & Poor's rating system, EVA model, BSC strategic model in aborad, and the internal measurement index of banking performance, the evaluation index about the wholly state-funded commercial banks, the risk rating about the joint-stock commercial banks, the rating index about commercial banks and so on in China.Based on these evaluation index systems, I established the evaluation index system about commercial banks of our country from five phases: for-profit, liquidity, security, ablity of development and management. And then I chose eleven listed banks of our country, by means of the factor analysis method to analyze their opration performances. The factor analysis method is to produce independent factor index by circumrotating coordinate to reduce the dimensions, construct functional express to evaluate with corresponding weighting, and then calculate the overall score of every assessed commercial bank. This method is highly scientific and has good precision. However, because of the limit of the number of sample banks, sometimes an evaluating conclusion beyond real facts is possible.The results show that opration performances of state-owned stock commercial banks are not as good as other stock commercial banks. At last, based on the results from front analysis, give some advances to improve Chinese commercial banks' opration performance. As to the state-owned commercial banks, first, we should strive to resolve non-performing assets to reduce the rate of non-performing loans of state-owned commercial banks further. Second, improve the corporate governance mechanism of joint-stock and reform mechanism of the human resource managemnet. Third, streamline the size to achieve economies of scale. Finally, the state-owned commercial banks should take advantage of their large number of networks to run their business, provide products what accepted easily by the public and can be producted massively. For joint-stock commercial banks, I suggest that they shuold follow to do these: at first, they should promote business innovation actively.Second, they should take the client-centered competitive strategy.