Empirical Study On The Influence Factors Of The Domestic Commercial Bank Performance

As the center of the modern financial industry, the banks play an important role in the economy system. Their development have a very close relationship with the operation of the banking system and the national economy. In condition of state-owned commercial banks' transformation and challenges by the foreign banks, the bank performance has become a key issue to the domestic banking industry. Improving the bank performance is the key to maintain the stable operation of the national economy, open up the bank industry, and participate in market competition actively.Base on the mentioned earlier, this paper researches on a variety of factors which have influence on the domestic commercial bank performance. First, many related literatures on bank performance at home and abroad are reviewed by classification. Then by analyzing the status quo of the domestic commercial bank, the development model of bank performance, the indicators and the ways of measuring bank performance are presented. And on the basis of these, the factors including ownership structure, bank size, market structure, operating principle, professional ability, career planning and the salary incentive mechanism that affect the bank performance are analyzed on the theoretical side. In the empirical part, the Logit models of commercial bank performance are built by Eviews5.0 with a variety of indicators including financial indicators and non-financial indicators. By the significance test, the factors that play the key roles in the bank performance are found out. And then the accuracy of models are tested by the forecast test. Several suggestions of the way to improve the domestic commercial bank performance are presented for giving the inspirations and helps to the development of domestic banking industry.