Research On The Market Performance Of China's Commercial Banks

Modern commercial banks are financial enterprises that have comprehensive service function. They aims at making profit, and its management object is manifold financial asset and financial debt. It is an important part in modern financial system, which plays an important role in the whole national economy. With the further economic regime reform, the changing environment since China's entry into the WTO, especially the facts that financial market opening up all around to the outside world in late 2006, the capital requirement of new Basel agreement, furious price competition of credit business, China's commercial banks face drastic press and challenge of reform. Therefore, the main task of China's commercial banks at present is to enhance their level of operation and management, to improve their market performance , to strengthen their competitiveness. So it is necessary to analyze the market performance of China's commercial banks.As far, we have paid more attention to the point of view from industry histology, and a large number of literatures about market performance of commercial banks are published and elementary study achievements have been reached, but there are still some shortages. For example, they didn't contact commercial banks with real economic departments. They have not taken the unification of liquidity, security and profit into account when they evaluated market performance of commercial banks. They only saw about ratio of net income to asset and ratio of net income to equity, and they didn't pay attention to loan quality and the plenitude rate of net income to equity. It is lack of literature about comprehensive evaluation about market performance. In addition, most researchers treated market structure as the definitive factor opposed the factor of ownership structure. On the basis of researches at home and abroad, this paper introduces the theory of market performance and defines the market performance of commercial banks at first. Secondly, this paper chooses index that suit for China's commercial banks to evaluate the market performance of China's commercial banks. Then this paper does qualitative analysis and quantitative analysis so as to take on the characteristic and evolvement trend of the market performance of China's commercial banks. Furthermore, this paper sets up evaluation mold of market performance of China's commercial banks by efficacy coefficient. Besides, this paper compares the market performance of China's commercial banks with that of foreign commercial banks. Then considering the industrialization characteristic of banks industry, this paper tries to find the crucial factors of low level of market performance from two aspects of banks'interior ownership structure and market structure, which is from the point of view of industry histology. Finally, this paper puts forward the ways to improve the market performance of China's commercial banks.