The Evaluation Of Operational Performance Of Development Financial Institutions In China

Since development financial institutions (or policy banks), represented by China development bank, were established in China in 1990s, many views upon their role in the market, the functionality, the operation mechanism, and even the necessity has been proposed in both academic and practical fields, which mainly focus on the relationship between the social performance and operational performance of the financial institutions. Furthermore, the operational performance attracts more attention than the social performance due to the inefficiency of the policy banks at the beginning of establishment, and the managers'expectation that the development financial institutions will become a new type of market players in the future. Therefore, it is necessary to evaluate the operational performance of the development financial institutions in order to improve our understanding and provide some critical suggestions for their healthy and scientific development. In this thesis, we will take China Development Bank as an instance, due to its typicality, to analyze how to construct an effective evaluation method for the operational performance and provide some related specific suggestions.The rest of the thesis is organized as follows:In Section 1, we briefly introduce the background and significance of the problem and describe the thread and methods used in our research. In addition, a summery on the present research at home and abroad about the development finance is provided.In Section 2, we introduce several main viewpoints about the conception of the development financial institutions and then analyze their characteristics and operation mechanism. Moreover, the comparison of the associated conceptions and an introduction to the theories on performance evaluation of financial institutions are given.In Section 3, for China Development Bank, we compare the operational performances since establishment with respect to the structure of liabilities, financing capability, profitability and asset security. Then we select several typical indicators, based on which some results are obtained from the comparison between China Development Bank and the overall performance of Chinese banking or the abroad development financial institutions.In Section 4, we construct an index system consisting of the universal indices used to evaluate the operational performance of banks, then analyze and modify some components to make it more objective and reliable for the evaluation of the development financial institutions.In Section 5, we assign two different sets of weights to the indices of our system based on subject and objective methods respectively, and then compare the operational performances of China Development Bank and some other commercial banks with good performances by applying synthetic evaluation model including entropy method, gray correlation analysis and AHP method. After that, we do the Kendall consistency test to the results to verify the effectiveness of our method.In Section 6, according to the problems in practice, some advices are provided on how to improve the operational performance of China Development Bank.