Performance Evaluation, Based On Factor Analysis Of China's Listed Banks

As the core and the pillar of modern economy,development of the financial industry can decide a country's development to some extent.Faced with the fierce competitive environment,every domestic bank has to improve its business performance in order to improve competitiveness.This paper adopts the factor analysis to study the performance of China's listed banks. First using factor analysis to analyze China's listed banks comprehensive performance in 2007,and then select the highest score-the General Shenzhen Development Bank and the lowest score-the Bank of China to carry out comparative analysis,and make a deep analysis of the two listed banks operating performance differences in a wide range.The results show that,the operating performance of our country's listed banks are very different,the joint-stock banks have the best operating performance and the state-owned commercial banks have the worst;through the specific analysis of the differences between the two listed banks,they have a so big differences in operating performance is mainly because of the differences of profitability and viability.Studies suggest that,strengthen capital management,enhance efficiency in the use of capital is the emphasis to enhance the overall business performance,innovate financial products to change the traditional business model of the domestic commercial banks and increase the bank's non-interest income is the effective way to enhance the performance of banks;improve bank corporate governance structure and strengthen internal control system are the necessary means to enhance the performance.