| With the deepening of the financial system reform, a large amount of city commercial banks has emerged in China. The city commercial banks, based on the urban credit cooperatives, were founded by reforming several former small-scale city credit cooperatives through the participation of local government, enterprises and individuals.Grounded on local economy, small and medium-sized enterprises and citizens, the small-scale city commercial banks are the local banks with locality. The banks of this kind play an important role in the development of the financial system in China as well as local economy. In recent years, the city commercial banks develop increasingly better, some of which have even been listed successfully. Besides, some are struggling for the listing. However, for the city commercial banks, it is still a question whether it is advantageous or disadvantageous for them to be listed. Moreover, with the development of the market economy, the competition of this field has become especially fierce. Therefore, the city commercial banks are now also facing with crisis. Under such circumstance, it is unknown that how the city commercial banks can correctly analyze their own operation performance and improve their competitiveness and operation efficiency. This essay mainly studies three listed city commercial banks and compares their operation performance before and after listing to reveal their disadvantages and put forward suggestions.This essay, based on theories and demonstration, gives corresponding suggestions. During the research, the author decides to assess the performance of three city commercial banks before and after the listing comprehensively with the help of single index model and EVA value model.First of all, the author reviews the research situation of foreign and domestic scholars. The foreign scholars rarely study the development of city commercial banks. Instead, they mainly research on the community banks in the USA, covering the size, market positioning and trans-regional operation. However, domestic scholars study more in this field, mainly including cooperate governance, market positioning, trans-regional operation, categories of business and characterized development. In terms of the listing of city commercial banks, most scholars think that the advantages of it will benefit the future development of city commercial banks, since the listing can give them capital and improve the operation status. Besides, as for. its relation with operation performance, most scholars find that the listing can promote the improvement of the performance of city commercial banks. In addition, some also find that the three city commercial banks have improved their operation after listing. When it comes to the methods of assessing the performance of commercial banks, most scholars favor the performance assessment method of combining EVA and ESC together.Then, the author analyzes the status quo of the city commercial banks in China, mainly demonstrating the emergence of city commercial banks, the internal disadvantages, outer environment and the listing. In1980, the country decided to establish urban credit cooperative. However, later on, several urban credit cooperatives revealed their risks. Hence, reform became especially urgent. Then, in1995, the State Council announced the establishment of urban cooperative bank and decided to remove the former urban credit cooperative. In1998, the city cooperative bank changed its name into city commercial bank. However, there are also some problems during the development including the chaotic internal governance, incorrect market positioning, and shabby innovation of financial products, single intermediary business, bad loan rate and narrow operation region and so on. Meanwhile, the city commercial banks are also faced with some challenges and competitions. For the perspective of the whole banking industry, after the system reform, the state-owned commercial banks recover their strong competitiveness and begin to attract the customers of small and medium-sized enterprises, which threaten the city commercial banks. Besides, the flooding of foreign banks in village banks and small and medium-sized enterprises also threaten the development of city commercial banks. Currently, our country is experiencing a period of economic transformation. The policies of all aspects change. Therefore, many banks hope to enhance their own competitiveness through listing. Nowadays, there are about more than20banks waiting for the listing. However, not every city commercial bank is suitable. Though the listing may bring advantages to banks, it also has some shortcomings. Considering the listing, the city commercial banks should decide whether they want to develop into national big banks or small community banks. Therefore, for the city commercial banks nowadays, they should find out their own different and characteristic road.Later on, the author utilizes two performance assessment methods to compare the performance of three listed city commercial banks before and after the listing.When using the index method to analyze the performance of these three city commercial banks before and after the listing, the author chooses to analyze from four aspects including the security, fluidity, profitability and growth. Generally, these three have improved these four aspects after the listing. The Bank of Ningbo enjoys the best safety while the Bank of Beijing has the best fluidity. Besides, the Bank of Ningbo has the best profitability while the Bank of Nanjing experiences the best growth. During the analysis with EVA, the statistics of these three banks from2005to2011are analyzed to find the EVA value and EVA return rate before and after the listing. The results show that the EVA of these three city commercial banks has improved remarkably. However, except the Bank of Beijing, the Bank of Ningbo and the Bank of Nanjing all have lower EVA return rates.The comparison results by using two methods all reveal that the performance of city commercial banks has improved to some extent. However, it is also found that the city commercial banks do not have excellent performance in terms of some indexes such as the high cost income. Besides, compared with state-owned commercial banks and joint-stock commercial banks, the city commercial banks still have a long way to go. Therefore, according to these disadvantages, several pieces of shabby suggestions are revealed in this essay including improving the cooperate management structure, making suitable market positioning, enhancing the support for the small and medium-sized enterprises, providing personalized service, expanding intermediary business, promoting business innovation, controlling cost, utilizing differentiation development strategy and introducing EVA system.This essay is quite innovative since it compares and analyzes the performance of city commercial banks before and after the listing. Most domestic scholars study the state-owned commercial banks and joint-stock commercial banks instead of the performance of the city commercial banks before and after the listing. After demonstrating the status quo of the city commercial banks, it analyzes many problems occurred in the development of the city commercial banks. Besides, with the fierce competition of current banking industry, many city commercial banks hope that they can enhance their competitiveness and solve their shortcomings through listing. After analyzing and demonstrating, this essay not only shows the performance of the three city commercial banks before and after listing but also provides reference for some unlisted enterprises. |
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