The Report About The Business Operation Of Commercial Bank In China During2007-2012

Commercial banks are treated as the basis of national economy in China. Whether ithas good performance or not has great influence on other industries in national economy.Global financial crisis attacked the global economy in2007. As result of this crisis, theincreasing rate of our economy decreased and the operations in our bank system wereinfluenced by this crisis with the regulation being more rigid. Therefore the focus of thispaper was on the operation of commercial banks in China after2007. Besides, we gaveexplanation of this change and summarized problems existing in operation anddevelopment in our bank system. As to these problems, we gave some advice in policy atthe end of the paper.For the data absence in bank system and the total asset of sixteen listed bankscovered80percent of the whole industry, we took the16listed banks as our study sample.With the method of analysis on dynamic, ratio analysis and factor analysis, we putemphasis on the asset operation, debt operation, intermediate business and their influence.Then we made performance evaluation on the whole industry. At last, we got conclusionas follows. Firstly, interest rate got marketlized more quickly and the slow down ofdomestic economy put great pressure on the traditional business which could get high netprofit on interest in asset and liability business. In recent five years, the increasing rate gotslow and the allocation got more flexible. In the second place, with the bank regulationgetting more rigid, the intermediate business in commercial banks got normalized.Although the increasing rate got slow, the potential in the future was great. Thirdly,operation of commercial bank in our country had a good performance. It got boosted from2007to2012, but had a bit down in2012which mean that commercial bank had to gottransformation. As a whole, commercial bank in China made the appropriate measure inthe post crisis area and good overall.