Research On Financial Performance Evaluation Of China 's Listed Commercial Banks

As the degree of opening of China’s financial market deepening and the promotion of interest market-oriented reform, the listed commercial banks are facing new opportunities and challenges. Our business environment of the banking sector changed significantly in the background of China’s economic growth slowed and the large influx of foreign banks in China’s financial markets. The internet companies involved in financial services is also a factor. So it requires that commercial banks must improve competitiveness to adapt to the new situation. Financial performance is very important for commercial banks, it can fully reflect the operation and management and find the problems. It can also disclose the risks faced by banks and provide scientific basis for the decisions of the managers and investors.On the basis of financial performance evaluation index system of the existing commercial banks, this paper constructs the evaluation system which reflects the profitability, safety, liquidity and the capacity of growth management of the commercial banks. The data of 16 listed commercial banks in 2011-2013 is chosen for studying. Multi-index test is used for empirical analysis and the sample banks are ranked by calculating the composite score. Deficiencies of each category of banks are analyzed and summarized, and specific suggestions are made to strengthen the capacity of guarding against financial risks of China’s listed commercial banks. The suggestions can also promote the management and sustainable development as well as the international competitiveness.