Study On The Business Performance Evaluation Of Listed Commercial Banks In China Based On The DEA Approach

BACKGROUNDCommercial banks are important in China’s financial system, and play a pivotal role in China’s economic operation, the level of operating performance of China’s commercial banks will affect the healthy operation and development of the entire financial industry, thereby affecting the overall macroeconomic. Foreign banks enter into China have a huge impact on the development of China’s commercial banks, compared to banks in developed countries, China’s commercial banks profit model is relatively simple, relatively narrow scope of business, profitability is weak, and gradually formed a diversified pattern of competition among banks, China’s commercial banks will face enormous competitive pressures. In the2012national financial work conference, Premier Wen Jiabao put forward the essential requirement to adhere to the real economy of financial services, commercial banks operating performance issues to the focus of attention, how to effectively evaluate the Performance of Commercial Banks to become a widespread concern problem.PURPOSEThe purpose of this study:first, Through the commercial bank management of the performance evaluation of literature study, to explore for commercial bank management performance evaluation method, especially through the theory reference; second, the analysis on the business performance of16listed commercial banks of Our country using data envelope analysis method. According to the evaluation results, the listed commercial Banks of China operating performance and the cause of the gap and connecting with the practice policy Suggestions are given. By the conclusions of this article can regulators, investors and commercial banks operating performance evaluation provide a reference.MAIN CONTENT AND VIEWThis paper mainly divided into several parts: Chapter One is the introduction. This part firstly discussed the research background, the significance of this research next to do a detailed introduction, next, discusses the research ideas and content, and briefly explain the research methods, for the final major contribution and shortcomings are summarized. The purpose of this chapter is to clear the context and basic framework.Chapter Two is the literature review,this chapter is divided into two parts. The first part, divided into two aspects of foreign and domestic, commercial bank of business performance evaluation theory research and reviewed in this paper. The second part, divided into foreign and domestic two aspects, the commercial bank management performance of evaluation methods were reviewed in this article.Chapter Three is the theoretical analysis of business performance evaluation. Which is divided into three parts. The first section is a part of the theoretical basis, and mainly discusses the relevant theory of the Performance of Commercial Banks. Section Ⅱ is a comparative analysis of the evaluation method and compared the DuPont System of Financial Analysis, Economic Value Added and the Balanced Scorecard, in particular highlighting the advantages and applicability of data envelopment analysis. The last one selected indicators of operating performance evaluation, and build the prototype of the evaluation index system.Chapter Four is the application of DEA method of the listed commercial bank management performance evaluation. The first section is the DEA method based on constructing the evaluation index system, and the analysis of the system dimensions are discussed in this paper. The second section describes the sample and data banks. The third quarter is the introduction of the evaluation process and the result of evaluation listed. The fourth section is the focus of this chapter, the evaluation results of comprehensive analysis.Chapter Five discusses the conclusions and recommendations of this article. The first section is the conclusion of this article, the chapter focuses on the analysis of the DEA method estimates derived conclusions.The second section is the part of policy recommendations, the main conclusions of this article gives a practical policy recommendations of regulatory agencies, commercial banks and investors to refer to. Outlook section of the study, mainly to explain in this article can be the part of in-depth study and future research trends.CONTRIBUTIONS The main contribution of this paper is reflected in the following aspects:Firstly, this paper used the qualitative and quantitative approach to study the performance of the commercial banks, the evaluation qualitative analysis mainly focus on commercial bank management of the performance evaluation, quantitative analysis mainly through the application of the DEA method of China’s listed commercial bank management performance evaluation.Secondly, this paper established the commercial bank management performance evaluation index system. Through the analysis of the theoretical foundation of the commercial bank, trying to build a including operation ability, profitability and development ability of the performance evaluation index system, used to comprehensively evaluate the performance of the commercial Banks.Finally, through the application of the data envelopment analysis three models (CCR model, BCC model and the efficiency DEA model) to analysis the listed commercial bank’s management performance, the improved calculation of the values of the deep analysis of the bank improvement measures, and targeted gives advice.