Operating Performance Studies Of Commercial Banks In China

This paper is mainly to analyze China’s20commercial banks’operating condition of2010annual. So the data are from each bank’s2010annual report. The empirical method is factor analysis method of mathematical statistics. So the related theories of factor analysis method are introduced in the second chapter part, including the basic idea, calculation steps, advantages and so on. We can find several comprehensive indices that can affect operating performance of business bank by factor analysis, which makes comprehensive indices show linear combinations of original all indices and they are not related to each other, these comprehensive indices are public factor that we determine. Therefore we can use factor analysis to find some public factor to replace original statistic data from complex analysis and evaluation process, it can make complex and trivial work easy, and it can also make us use relevant information and data fully when we research the operating perfonnance of commercial banks, so as to reasonably evaluate and fairly analyze commercial banks.Next we construct this paper’s commercial bank management perfonnance evaluation system on the basis of reference to commercial bank management performance evaluation system of home and abroad by the principle of overall, key, stratifity, operability, and combination of quantitative and qualitative. This system can reflect six aspects of bank operating condition, they are respectively profitability situation, asset liquidity situation, asset security situation, management capacity, development capacity situation and market share situation, including specifically ROE, NIM, the Ratio of Cost Income, Liquidity ratio, Deposit-loan ratio, Capital adequacy ratio, Bad loan ratio, Total asset growth, Operating income growth, Net profit growth, Capital accumulation rate and so on. This paper choose ICBC, ABC. BOC, CCB, BANK OF COMMUNICATIONS, CHINA CITIC BANK, CHINA EVERBRIGHT BANK, CHINA MERCHANTS BANK, HUAXIA BANK, MINSHENG BANK, PUDONG DEVELOPMENT BANK, INDUSTRIAL BANK, SHENZHENG DEVELOPMENT BANK, GUANGDONG DEVELOPMENT BANK, ZHESHANG BANK, BOHAI BANK, EVERGROWING BANK, BEIJING BANK, NANJING BANK and NINGBO BANK as sample banks. The data are from each bank’s2010annual report, original indices system is settled on the basis of the annual report. So the selected material is relatively new, and we can see the latest development levels of banks in china by researching this20commercial banks operating condition in2010.The paper’s research idea is that according to the actual situation of our commercial banks operating we evaluate banks’operating performance objectively by using reasonable evaluation indices and empirical method, and finally we can get score function of bank:f=0.33595×F1+0.18107×F2+0.14295×F3+0.10756×F4, F1,F2,F3,F4are four public factors we extract. Throughout the function we can get each bank’s comprehensive score so as to see the operating performance level, then analyze the reasons of different operating performance further in order to provide the corresponding countermeasures and suggestions which can improve management level of commercial banks.