A Study On The Industrial Performance Of China's Commercial Banks

Efficiency of commercial bank system guarantees the healthy and consistent development of the bank itself, also makes the national economy running well. With the widely opening of our country's financial industry, more and more foreign efficient banks are coming in. So, the national commercial banks are facing more pressure of competitions, and low efficient management will result their failure. Further more, there are many problems with the national economy, this are partly coursed by the low efficiency by the commercial bank system. Under the situation, this text deeply researches on the performance of the national commercial bank industry, then try to find the facts which influences the performance, lastly gives some suggestions on policy.We should define the industrial performance of commercial bank from two aspects: micro-performance and macro-performance. Micro-performance is used to study on the input-output efficiency of bank itself. Macro-performance is used to study on the stability of the whole bank system, and the arrangement that commercial banks do to the social capital-resources.Based on the real data, this text chooses 23 commercial banks as a sample, and then makes an empirical analysis on it. The result shows, that the industrial performance of China's commercial bank is too bad, both on micro aspect and macro aspect. Firstly, the technical efficiency in management of national commercial banks is far away below that of foreign banks. Secondly, national commercial banks don't have the economies of scale. Thirdly, the arrangement that commercial bank system do to the credit resources doesn't efficiently promote the development of the national economy; Private enterprise and small enterprise need capital support but can't get enough loans from banks. Fourthly, national commercial bank system is always unstable.In order to improve the industrial performance of China's commercial bank, we must firstly find out the courses that influence it. This text use criterion analysis to resolve this problem, mainly through the theory of property and the theory of market-structure. The property structure can influence the bank's efficiency through incentive mechanism, and different property structure causes different behavior of management, then the efficiencies among banks are different. Commonly, shared-banks and private banks are more efficient than state-owned banks. The market structure of commercial bank also influences the industrial performance to the same extent. Market structure can influence banks' behavior through competition mechanism, and more competitions are there in the market, more efficient each bank is. We can say, property structure and market structure are the two basic courses that influence the industrial performance of commercial banks. Of course, there also exists some other courses, such as the rising rate of the economy, the rising rate of save, the state of the development in capital market, and so on.This text then uses Eviews(a kind of software) to check all the causes that discussed before, and selects the most important causes according to witch can obtain some suggestions.Finally, this text gives a comprehensive summary, and proposes the further research direction of how to better research on the industrial performance of China's commercial bank.