Research On The Development And The Business Performance Of China City Commercial Bank

City commercial bank is founded in the mid-1990s, established on the basis ofthe urban credit cooperative, and it is a financial institutions with Chinesecharacteristics. City commercial bank played a very important role in improvingChina’s financial system, helping local financial development and providing residentswith jobs and financial services.City commercial bank have experienced a dark period of history in thebeginning of the establishment, suffering from small asset size, operational risk, andthe poor quality of employees. In recent years, city commercial banks improved assetquality and capital amount through its own efforts, by attracting domestic and foreignstrategic investors, founding cross-regional associates and other ways. Thedevelopment of city commercial banks were upgraded to a new level, bank of Ningbo,Bank of Nanjing, Bank of Beijing had joined the stock market.City commercialbanks’ new features and new problems appeared in the development are more worthyof academic study.This paper first described the history and current status of the city commercialbanks, introduced starting from the predecessor of the city commercial banks-urbancredit cooperatives. Then described in detail the development of city commercialbanks, the role city commercial banks played in the development of China’s financialsystem and China’s accession to the WTO,and the new trend of development of citycommercial banks. Subsequently, this paper described community banks and localbanks in the United States and Japan, which were similar with China city commercialbanks, sumed up the experience for the development of China city commercial banks.This paper also did an empirical analysis about the management performance of city commercial banks, the key factors of affecting the management performance weresummarized, including the size of bank assets, banking structure, bank costs, riskfactors and financial ecological environment. In accordance with the results ofempirical analysis and China’s current financial situation, some recommendationswere made about the future development path of China city commercial banks. This isalso the focus and innovation of this paper.Talking about research methods, specification and empirical analysis wereused in combination in this paper. First described the definition,the characteristics,thedevelopment and the impact of city commercial banks.Then, using Eviews softwareand the collection of representative specific financial data of China city commercialbanks for analysis.The end of this paper made some recommendations on the futuredevelopment of city commercial banks. China’s study on city commercial bank wasmostly on the analysis and recommendations about city commercial banks’ problemsand solutions. Just very small part of the literature had empirical analysis, and theempirical analysis was only about collecting data and doing horizontal or verticalcomparison,the use of econometric models for empirical analysis was very limited. Sothis paper’s empirical analysis of China city commercial banks has practicalsignificance.