China's Commercial Banks Operating Efficiency Evaluation

Since reform and open to the world, our domestic bank system has formed progressively and made great contribution for the development of the financial industry of China in recent 20 years. It has also played an important role in supporting the development of economy and social stability, with its own scale and strength expanding increasingly. And on the other hand, some problems still exist in our commercial banks as follows. Commercial banks hasn't reached ideal sufficient rate of capital and has shown weak ability to resist risk; The business efficiency of commercial banks is low and the ability of making profit is not high; The scale of financial assets are relatively small and the per capita index is low; The strategy and policy of bank competition remain outdated and illegitimate competition and malignant competition happen occasionally in financial market; The competitive main body of commercial bank lacks of insufficient vigor and the medium and small commercial bank and the foreign invested bank face the extremely high barrier to enter financial market. These problems cause the average managing benefit of commercial banks in China remaining in a low level.Based on it, this report will do comparative analysis on such groups as state-run commercial bank vs. foreign commercial bank, state-run commercial bank vs. stock-joint commercial bank, domestic listing stock-joint commercial bank vs. 4 typical listing commercial banks in Hong Kong. Through this analysis, the reasons that produce the low average managing benefit of commercial banks will be found and focused on these aspects such as fuzzy property relations, weak financial supervision, incomplete information, single managing mode and the unbalanced market structure caused by the monopoly in financial market. On this basis, this report has put forward some policies and measures suiting China's actuality and conditions, which will make the commercial banks in China improve managing benefit constantly and get favorable positions in the competition of international finance. To learn that is essential for us to make the competitive strategy and protect financial industry with healthy development. It also has overall meanings to deepen the reform in banking system and keep the sustainable development of financial industry.