Research On Evaluation Of Operating Performance In Chinese Banks After Private Capital's Participating In-Based On BP-NN Model

Efficiency is one of the hot topics economists are most concern with. It is also the goal which the commercial banks try their best to achieve in management and administration. The performance of the banks is not merely seen as level of the bank's own management, but also is the main reflection of the competitiveness of the banks and the inherent quality of economic development of one country at the same time. In the long run, the development of the bank depends on promoting efficiency. With the policy of reform and open to the world going on,the restriction of current bank system and that of its operation mode on the whole financial system are more and more obvious. It also restricts the development of private economic and whole national economy. With the development of the private economy of our country at full speed, their wish of participating in national economy is becoming stronger. But in the financial system, which is also the core of national economy, the level of private capital's participating in is very low. The pluralism, mufti-level economy and property structure need the bank system to make some changes so as to conform to it objectively. Under such background, the voice of establishing the private bank is higher and higher in recent years. When the private capital participates in bank industry, whether is there some progress which it will bring in the enhancing the performance of our banks and how much the performance of our banks is promoted? Such questions should be answered in theory so as to direct our practice of financial reform better. With China's accession to the World Trade Organization, the competition between Chinese and foreign banks will be fiercer. So this thesis studies the performance of the Chinese banks, has certain significance in both theory and reality.This paper firstly introduces some traditional methods of evaluating performance, such as determine the nature evaluation, Analytical Hierarchy Process (AHP), Fuzzy Comprehensive Evaluation (FCE), and Data Envelopment Analysis (DEA). Then we analyze the advantages and disadvantages of them. Secondly, I suggest that we should employ the BP-NN model to evaluate the performance of our national banks, and design a indexes system which consists 4 indexes, including scale, financial situation, the ability of risk control and the ability of growth.. Then we set up a more appropriate model to evaluate the performance of our banks. Thirdly, this paper makes a empirical analysis to the operation performance of 90 banks, the error of net imitate result both is below 5%. And we can see from the result of our analysis, the operation performance of banks which there is much private capital participating in is higher than that of state-owned banks, which means the development of the private banks has promoted the performance of state-owned banks. Finally, I suggested that we should Speed up the property right reform of he state-owned banks, speed up the transformation of the existing financial institutions by private capital, and the newly established private banks should be ran in some certain region primarily, so as to enhance the performance of our banks graduallyThe innovation of this paper is to construct a BP-NN model which is more adapted to evaluation of performance of our banks, then to make a empirical analysis to the operation performance of our banks. Of course, there are still some limitations and issues in the use of performance of our banks which based on the BP-NN model, and we should do more advanced studies or introduce more Fine and complex BP-NN model in our forward study.