A Study On The Performance Evaluation Of China 's Commercial Banks And Its Influencing Factors Based On Transition Countries

After the global financial crisis in2008, the global financial industry has been shocked by a certain degree. Undoubtedly, the banking sector is the center of the financial industry. The development of the banking sector largely reflects the extent of a country’s financial liberalization and deepening. As the most important participants in the financial system in China, the banking sector plays a significant role in promoting the development in the last thirty years of China’s reform and opening up. China’s banking sector has experienced about10years of reform. At this time, we need to analyze whether the self-development of China’s commercial banks reached our expectations, as well as how to increase the competitive power of China’s commercial banks in the global economy and capital markets despite drastic changes in the future. This is the background of this study and the purpose of the study. Based on the purpose of this study, we will view China’s commercial banks as the object of study, and the Commercial Bank of countries in transition as an important reference.thecountries in transitionare countries whose economic system are in transition. Scholars view China as part of countries in transition, so we select the countries in transition in this study as a reference. This study starts from comparing the commercial bank performance of commercial banks in China and the countries of Central and Eastern Europe and the CIS countries, on the basis of analyzing the differences,we analyze the causes of the differences, and make practical policy recommendations for the improvement of the performance of China’s commercial banks.This article is based on the study of the theory and literature review, from a methodological point of research literature on the performance of commercial banks. In the study of literature, we found that most of the research on the performance of the commercial banks in China is the investigation from a profitability point of view, while regardless of an integrated performance evaluation system to evaluate the performance of the commercial banks in China. Sometimes the results maybe be adeviation.In order to determine the research and innovation point of this article:we establish a performance evaluation system to evaluate China’s commercial banks, and the integrated use of the factor analysis, DEA method to analyze the performance and efficiency of the commercial banks in China. The research results show that China’s commercial banks in the consolidated performance are lag behind in Russia, Ukraine, Slovakia and other countries in transition. from micro indicators comparison of commercial banks, the main cause includes that the deposit and lending of commercial banks in Chinais relatively too high while the net flow lending liabilities id too low. so the development of China’s commercial banks is not satisfying, resulting in China’s commercial banks performance ranked in the bottom among the transition countries. based on the above analysis, we set a Sample of13commercial banks, on using fixed effects panel data regression model we study the factors affecting the performance of China’s commercial banks, the main conclusion is that:the main factors affecting the performance of China’s commercial banks are the macro and Industrial factors as the GDP growth rate, monetary policy, financial deepening degree and the share of large commercial banks. While large commercial banks’operating efficiency does not impact banks’ performance muchto china’s commercial banks,the performance improvement is based on a reasonable formulation of monetary policy, the financial deepening degree and reform of the market mechanism. At the same time, the blind size expansion of the bank does not contriubute much to the commercial banks in China.