The Empirical Study Of The Performance And Intermediary Business Of Listed Commercial Banks

The intermediary business has been seen as one of three kinds of earning forces for modern commercial banks. It can bring in non-interest income without taking up large bank funds. Besides, it can diversify commercial banks’income structure, improve overall performance and spread bank risk. Since1970s, the intermediary business turns into the main force of international commercial bank’s evolution. For a long time, our banking system put off the development of the intermediary business in the background of separate operation model. Accession to the WTO, commercial banks actively develop the intermediary business, the net income of intermediary business vigorous growth, at the same time, lots of new products type have been introduced. However, the intermediary business is much more vulnerable to external economic environment, the hidden and variety risks are likely to trigger without effective supervision. Some commercial banks blindly release intermediary business products. This will not only be costly, but also bring potential risks for the bank. The environment to which commercial banks must face is changing all the time, it is essential to analyze intermediary business’s efficiency interbank, it is meaningful to explore the effects of intermediary business for banking industry’s comprehensive strength.1. The study mentality of this dissertation:On the basis of review related academic research about bank performance evaluation and the external effects of intermediary business. This paper defined the concepts and business scope of intermediary business, introduced the CAMELS system of evaluation, summarize the DEA efficiency analysis and factor analysis briefly. Then classify the17listed commercial banks division according to their operation scales, select indexes which reflects a bank’s performance and its intermediary business’s efficiency within the framework of CAMELS and DEA intermediation approach. Next, analyze related indexes by descriptive statistics, get the commercial bank’s integrated performance cent and its scale factor notch, get the intermediary business’s efficiency score using the parameters of data envelopment analysis (DEA). In addition, grasp the situation of intermediary business according to vertically analysis and horizontally comparison of factor notch and efficiency cent. Last but not least, analyze the relationship between bank’s performance and intermediary efficiency by Pearson related coefficient test. Based on this, table a proposal to improve the intermediary business.2. The study contents of this dissertationChapter1is the brief introduction of this paper. Definite the research objectives based on the introduction of the background and significance of this thesis, depicts the study mentality and empirical methods, summarize the content framework, point out the characteristic of this thesis.Chapter2is the literature review. Overview some related academic research about the bank’s performance and its influencing factors, intermediary business and its external effects. Then summarize these literatures’aspects which worth using for reference or in need to make improvement.Chapter3is the synopsis of the theory and demonstration methods. Brief introduce the CAMELS system of evaluation, select related evaluation indexes, define the intermediary business, presentation the DEA efficiency analysis and factor analysis.Chapter4is the empirical research of the bank performance and the operation scale. After the selection of index and sample, analyze the performance indicators of listed commercial banks by descriptive statistics. Discuss the ranking results of the factor analysis to summarize their changes.Chapter5is the empirical research of the intermediary business. Analyze the stage achievements of the commercial banks’intermediary business by descriptive statistics. Calculate the intermediary business efficiency by BCC model and Super-Efficiency model. Discuss the ranking results of their efficiency to summarize their changes.Chapter6is the correlation analysis among bank performance, intermediary business and operation scale. Make Pearson correlation testing among those three in pairs. Analyze the reason that produce the present situation.Chapter7is the summary of this dissertation. Sketch out the conclusion about commercial banks’performance and the intermediary business efficiency, Give advice on increasing intermediary business efficiency, summary the shortage of this paper.3. The study conclusions of this dissertationThere’re three main conclusions of this thesis. First, after compare the factor notch ranking combine with the descriptive statistic analysis of bank profitability, asset quality and capital strength, the paper find out the commercial bank system’s performance level is rising. State-owned banks present a average performance of stable growth, Joint-stock banks present a low performance of internal differences, Local commercial banks present a excellent performance of volatile change.Secondly, after descriptive analysis of the investment and output of intermediary business, combined with the DEA efficiency analysis method, get the overall efficiency, pure technical efficiency and scale efficiency of intermediary business’ranking. The paper find out State-owned banks have advantage in market share, however, the investment scale is approximate invalid. Joint-stock banks are invalid generally. Local commercial banks present a bouncing type ground as the wave motion of intermediary business efficiency, according with huge internal differences.Thirdly, the correlation between intermediary business and bank performance is non-stationary positive. To start with, intermediary business is positively correlated with profitability, but the significant levels fluctuate with the economic environment. Next, intermediary business is positively correlated with capital strength, but the significant levels fluctuate under the influence of policies and regulations. In addition, the intermediary business’s products are low additional and at low risk, its influence to flow assets and liabilities is limited, lead to no significant correlation between intermediary business and flow factor. Finally, there has no significant correlation between intermediary business and bank scale, the correlation between bank performance and bank scale is not significant.4. The study characteristics of this dissertationThere’re three main features of this paper. First, comprehensive evaluate the intermediary business efficiency by parameter data envelopment analysis (DEA). Secondly, comprehensive reflect the intermediary business’s external effects. Thirdly, segment market to analyze the business difference targeted.