A Study Of Analysis And Evaluation On Assets Quality Of Shengjing Bank

The correlation between operating performance and asset quality is close. Investors, managers and other stakeholders of enterprise will pay more and more attention to asset quality, which is useful for forecasting sustainable development potentials of the enterprise. As the advancement of financial disintermediation and interest rate marketize, the banking industry will face a completely completely open competition environment. Facing complex and volatile macroeconomic situation and the increasing intra-industry competition, Shengjing Bank must clearly understand its own strengths and weaknesses in asset quality, and strengthen quality management, take corresponding strategies to gain sustainable development. In the current study of Shengjing Bank, based on analysis and evaluation of its assets aquality, putting forward several specific sugesstions for future improvements of assets quality.The thesis builds the commercial bank asset quality analysis framework through the research of the non-financial firm assets quality and the commercial banks operating characteristics and property characteristics, and then use the trend analysis and horizontal comparative analysis method to analyze Shengjing Bank’s assets overall quality, structure quality and different types of assets quality, and it also using principal component analysis to comprehensively evulate the asset quality of Shengjing Bank and the matched banks. Compared with other banks, the asset quality of Shengjing Bank showed continuous improvemengt, embodied as the increasing degree of integration, the rapid expansion of assets size, flaxible capital structure coresponding to the changes of economic environment, strong ability of gaining cash, high flexibility and high liquidity et al. However there were some issues, including low core capital adequacy ratio, low profitability, restricted revenue structure, and high potential credit risk etc. To improve the assets quality of Shengjing Bank, suggesting to focus on strengthening credit risk management, promoting intermediate and retail banking business, increasing the core capital investment and reinforce the management of assets quality, etc.The research contributes to promoting the asset quality of Shengjing Bank, and enhancing the competitiveness, which has certain reference significance to many city commercial banks which are in early development stage in China.