Hengyang City Commercial Bank Performance

Commercial bank's performance measurement is the comparative analysis of its operating condition and results based on the principle of that profitability, safety and liquidity. With the deepening reform of commercial banks and rapid development of newly emerging commercial banks in our country, competition in the banking industry has become fiercer and fiercer especially after the full opening of our domestic financial industry in 2006, which asks for higher requirement for the commercial bank's performance measurement.Hengyang city commercial bank is the important constituent of the financial system in Hengyang city. After 7 years' development, it has grown into a local joint-stock commercial bank that plays an important role in promoting local economy, which was a small high-risk organization. So, it will be helpful for the development of Hengyang city commercial bank to extend measurement on its performance and probe into the strategy of improving its operational performance.Firstly, the paper defines the connotation of commercial bank's performance, summarizes the literatures on this topic, and overviews the developing history of Hengyang city commercial bank and the status quo of its performance as well.After that, we analyze the performance of Hengyang commercial bank regarding safety, liquidity and profitability from the quantitative perspective, based on the various financial data and single index method. Meanwhile, we finish the performance measurement of Hengyang commercial bank in 2007 by means of factor analysis method, and compare it with that of other 7 commercial banks in order to probe into the causes of the changes in its performance during recent years.Finally, based on the former analysis result, some suggestions are put forward to promote fast and sustainable development of Hengyang commercial bank, which include perfecting its management structure, increasing its capital adequacy ratio, improving service marketing and building up scientific performance assessment system.