China's Commercial Bank Branches Operating Performance Evaluation Of Empirical Research

For a long time, Chinese bank industry has been puzzled by many problems containing: lowcapital sufficiency ratio, high bad debt ratio, faulty interior control, and so on. For this reason,Chinese bank industry has not been developing in a healthy way. In the end of 2006, Chinese bankindustry opened to the world according the promise made when China entered WTO. A largenumber of foreign banks with abundant capital and advanced technology entered Chinese marketand competed with domestic commercial banks, which made flintier challenge to domestic banks.As the propeller of economy, the management performance of commercial banks influences thedevelopment of economy and the stability of society, so evaluation on the performance turns to bevery important. However, domestic management performance evaluation system has just started.Compared with its western counterparts, it is not systemic, so that it can not reflect commercialbanks' performance objectively and exactly. Moreover, the vast majorities of domestic evaluationsystems only focus on chief banks, but neglect branches. Therefore, researching on the branches ofcommercial banks is very meaningful.Firstly, the article introduces the evaluation systems and methods in western financial field inthree different types, including: supervisory evaluation system, social evaluation agencies andself-discipline evaluation system. Then, the article introduces the domestic evaluation systems andfinds their shortcomings.Secondly, on the foundation of researches on the performance of 10 branches in Jinan and 5branches in Liaocheng of a Chinese commercial bank, the article constructs an index system ofevaluation in four aspects, including: scale strength, integrated benefit, risk control, and potentialof development. Afterward, the article uses Principal Component Analysis and Cluster Analysis toarrange them in an order and analyze the problems in their management performance.In the end, according to the outcomes of the research and the performance of domestic commercialbanks, the article brings forward a series of strategies and suggestions, which is helpful to improvethe performance of domestic commercial banks.