Study On The Growth Performance Of Our Country Commercial Banks

In resent years, there are some happiness and sorrow in the changes of our countrycommercial banks’ performance. On the one hand, banks’ performance continuously grows,income structure is optimized gradually. On the other hand, according to the assets andliabilities, we find that the foundation of the growth performance of commercial banks isunstable. With the promoting of interest rate liberalization, the competition of financial sectorwill become more and more intense, dialectical analysis of the growth performance of ourcountry commercial banks, recognize the potential for performance growth, try to find theproblems, the significance of sustainable development of commercial banks is very important.This paper makes a statistical analysis that based on the financial and performance dataof our country16listed commercial banks during the period of2007to2009, using panel datamodel do empirical test. While affirming the growth performance of commercial banks,reveals the factors that discourage the growth performance of commercial banks. Finally, itproposes some suggestion for further improvement.The paper first defined commercial banks and performance of commercial banks.According the characteristics of product and highly leveraged, we can analyze factors thatbased on macro and micro angles. Second, from the general and structure makes a concreteanalysis the growth performance of commercial banks by the sample data, Found that the totalprofit is increase, net income proportion in total income has decreased, but it is still higher,non-interest income is increase, and it shows an upward trend in the percentage of income.The expenditure of the business management and asset impairment loss is majority in thewhole expend. Then we propose the unstable factors in the growth performance ofcommercial banks. Non-performing loan ratio is still higher, the actual of non-performingloan balance may be greater than the book value, the asset quality is poor; Although thecapital adequacy ratio of commercial Banks has satisfied the basic regulatory requirements, incontrast to the new capital accord, commercial Banks capital appear shortage; loanimpairment provision is insufficient in some commercial banks; the bank charges are notstandardized; and internet banking is influencing the traditional bank business. Using panel data model analyze the unstable factors in the process of growth performance of commercialbanks. Take return on assets as dependent variable. Take non-performing loan rate, costincome ratio, fee and commission income, capital adequacy ratio, the largest shareholderstake as independent variables. The empirical results show that the fee and commissionincome, capital adequacy ratio and loan provisioning rate have promote bank performance,ownership concentration have positive effect on bank performance in the short term. Costincome ratio, non-performing loans, deposit and loan ratio, the increasing asset scale havenegative effect to bank performance, and make some explains for the results.Finally, according to characters of the current market environment, some correspondingpolicy recommendations are given to how to improve the profitability of china’s commercialbanks. strengthen the financial system and product innovation, which can increase the bank’sintermediary business income; Strengthen the risk management, fully impairment loss onloans, meet commercial Banks capital regulatory requirements of the new agreement;Improve the efficiency of bank cost management, strengthen cost control ability; Strengthenthe supervision of Banks. Regulators, auditors, and shareholders should strengthen bankbehavior regulation, improve information transparency; Improve the bank’s corporategovernance structure can ensure commercial banks healthy and sustainable development.