The Research On The Sustainable Development Of Commercial Bank Listed In China

By the end of June2011, commercial banking industry in China was in goodshape, showing a strong development momentum, in which broad money (M2) was78.08trillion Yuan, up15.9%, and narrow money (M1) was27.47trillion Yuan, anincrease of13.1%; Meanwhile, commercial banks’ capital adequacy ratio andprovision coverage was greatly increased; banking corporate governance and riskmanagement was improved; multi-layered financial system has been improved. But in2007, the U.S. subprime mortgage crisis triggered a global financial tsunami, whichnot only leaded to "a hundred years old" Lehman Brothers crashing down, the U.S.major investment bank mergers and acquisitions, but also brought a strong negativeexternalities impact to the development of China’s commercial banks, warning China’scommercial banks in time of peace and preparing for war, and seeking the way ofsustainable development.Based on the analysis of the sustainable development theory and the resultingfinancial sustainable development theory, integrating existing research results, thisarticle proposed a new definition of commercial banks sustainable development thatcommercial bank only relies on itself not outside assistance to have the low level ofrisk and strong profitability. On the basis of a detailed analysis of two majorconstraints, that’s profitability and risk level affecting the sustainable development,according to a certain principle of selection indicators, and combining withempowerment theory including AHP and the variance theory, the paper structured thesustainable development index of commercial banks. The article had ancomprehensive analysis of sustainable development of16listed commercial banks inChina with the data from2008to2010by Using the index, and found the sustainabledevelopment that state-owned commercial banks was best, followed by other nationaljoint-stock commercial banks, city commercial banks listed on the most poor. Thepaper found that cost management, financial innovation service and risk managementlevel in poor level restricting the listed commercial banks sustainable developmentwhen making further analysis, and gave such three strategies as strengthening the costmanagement, innovating financial services and improving the level of riskmanagement to promote their sustainable development.The paper was composed by five chapters. Chapter I, introduction. This chapterdescribed the research background, research purposes and significance, literature review, article structure and research methods, and this article innovation andinadequate. Chapter II, the theoretical analysis of the commercial bank sustainabledevelopment. This chapter had a detailed analysis of the sustainable developmenttheory and its resulting financial sustainable development theory, the meaning ofcommercial banks sustainable development drawing on micro-finance sustainabledevelopment theory, and the two factors affecting its sustainable development.Chapter III, the construction of the listed commercial banks sustainable developmentindex. This chapter constructed the commercial banks sustainable development indexby combining with commercial bank profitability and risk theory, following someprinciples, using the analytic hierarchy process and variance theory determining theindex weight. Chapter IV, the comprehensive evaluation for the listed commercialbanks sustainable development. This chapter made a comprehensive analysis of thestatus and trends of sustainable development in the16listed commercial banks byusing sample data for2008-2010, and unearthed the root causes of listed commercialbank sustainable development. Chapter V, the countermeasures of enhancing the listedcity commercial banks sustainable development.