The Evaluation For Commercial Banks Based On Catastrophe Progression Method

Since the21st century, the degree of market openness and economic developmentcontinues to expand, as an important sub-system of the modern economy, a stable andefficient financial system is an important condition for the healthy and harmoniousdevelopment of the country’s macroeconomic, as an important element of the financialsystem, healthy operation of commercial banks is essential hub for the stable and efficientoperation of the financial system. Commercial banks are required to carry out businessactivities in accordance with the safety, profitability and liquidity requirements, which areunity and contradictory. Evaluation methods based on traditional theory can’t evaluate theoperation and management of commercial banks scientifically and objectively. Thus, thedegree of financial liberalization in the improvement and the reform of the financial systemin deepening, using the catastrophe progression method based on the nonlinear theory toevaluate the management of commercial banks is not only to enrich the research paradigmand method of evaluation of commercial banks which has important theoretical value, butalso to improve the management level of China’s commercial banks, and promote thesustainable development of China’s economy and society which have important practicalsignificance.Firstly, the background and significance of the topic briefly described, and the basicprinciples and theories of commercial bank management were combing, then found thatthe substance of the management theory for commercial banks is weighing around thethree principles, and the mechanism of catastrophe progression method are described,followed by construction of management evaluation index system from profitability, safetyand mobility, and16listed commercial banks, for example to start empirical research,comprehensive use of factor analysis, cluster analysis and catastrophe progression methodfor factor evaluation, comprehensive evaluation and elements of simulation of samplebanks.In this paper, there were the following innovations: First, using catastropheprogression method based on the catastrophe theory to evaluate the management ofcommercial banks, on the actual situation of the commercial banks operating in an objective and scientific evaluation. Second, combines the factor evaluation and thecomprehensive evaluation logically, and introduces simulation analysis of elements.