Based On Factor Analysis Commercial Bank Efficiency Research

The finance is the core and prop of the modern economy. In China, commercial banks are the most important part of the financial system. They play the key role in the economy, and have the important strategic status. For a long time, the commercial banks have many problems, such as high non-performing loan rate, low profit per person, and low efficiency. Besides, the reforms lag behind the economic situation. Therefore, the commercial banks receive many accusations. Along with banking industry's comprehensive opening, Commercial banks will face a more stern challenge. The banking industry of our country, especially state-owned banks, is facing more and more pressure. In this situation, the action to improve the performance of commercial banks is imperative. By evaluating performance efficiency of commercial bank, this paper finds the shortage of bank and gives some advises how to perfect them .It has very important significance.This paper adopts both empirical approaches and theory research approaches. It compares and analyses the efficiency of commercial banks, analyses the reasons which result the problems, and bring some advice to the problems.Firstly, by using single index analysis method, this paper compares and analyses the earning power, asset quality, operation power and development ability of different banks. It indicates there are some differences in the management condition. It also analyzes the index of earning power. The research indicates state-owned banks in variously with the joint stock system commercial bank existence disparity, and its disparity has the reduction tendency. Secondly, it constructs the bank achievements appraisal system by selecting some index. It calculates the synthesis scores of different commercial banks by factor analysis method and appraises their efficiency. It finds efficiency of state-owned commercial banks is relative bad. It is consistent with the conclusion which obtains with the single index analysis.Then, according to the related theory, it constructs a logarithmic function to validate the influencing factors on the efficiency of commercial banks. Furthermore, it explains the reasons that cause the differences in the achievement of different banks from the structure of property right, marketing structure, asset quality, and scale.Finally, it discusses the measures to enhance the achievement of commercial banks. State-owned banks should reform the property right, reinforce cost management, and improve asset quality. The joint-stock banks should improve their performance by making appropriate strategy and perfecting bank system. At the same time, the government should provide a good external environment.