Empirical Research On Performance And Its Influence Factors Of City Commercial Bank In China

City Commercial Banks (CCBs) which are the financial services industry with Chinesecharacteristics were founded in the mid-1990s in China, and their predecessors are theurban credit cooperatives. Since2003(CCBs began reform)CCBs have gradually beendeveloping the important part of commercial banking industry in China by the implementof strategies, such as the resolve of risk assets, financial products innovation, breakthroughof geographical restrictions and the introduction of strategic investors. However, for theirinherent defect and the fierce competition in the banking market, CCBs have been living inthe course of survival and development facing the competition of state-owned commercialbanks and medium-size joint-stock commercial banks in the long term. The most importantissue is to improve the comprehensive competitiveness of CCBs, whether or not theperformance of CCBs is the most representative evaluation index which reflects the CCBs’comprehensive strength. Therefore, the study on the performance of CCBs has theimportant practical significance in improving the comprehensive competitiveness andensuring the future development direction.This thesis makes use of the frame of market performance about industrial organizationtheory, through summarizing the research achievements both at home and abroad, it studiesthe influence factors of the market performance of CCBs in order to reflect thecharacteristics of CCBs in China based on the generalized DEA model and multiple linearregression models. According to the conclusion, it puts forward relevant countermeasuresand suggestions as practical as possible.This thesis includes five parts:Chapter1: preface. In this part it includes the research background, purpose,significance, subject, method, innovation and shortage of this thesis. Through summarizingthe related literature both at home and abroad, it finds out the research points to theperformance of CCBs about the economies of scale and scope, and cross-regionaldevelopment aspects. The innovation points of this thesis are to calculate thecomprehensive efficiency of CCBs by generalized DEA model, meantime introducing thecross-regional development degree index, and to put forward efficient countermeasures andsuggestions.Chapter2: Corresponding theory analysis. Firstly, based on the frame of marketperformance of industrial organization theory, it sums the formation and development bothat home and abroad in order to hold out the establishment of analysis model. Secondly, itexpounds the main index, such as Profit Rate, Lerner index, Bayne index, and Tobin q.Finally, it reviews comprehensively the market performance on the resource allocation efficiency, the industrial scale structure efficiency and technical progress.Chapter3: it introduces the meaning, development course, present situation and existingproblems of CCBs，and expounds the developmental mode of American community Banksand Japanese regional Banks in order to draw lessons and experience. Then it analyses theinfluencing factors of the performance of CBBs in China, such as bank efficiency,cross-regional development degree, the property right system and commercial Banks threecharacteristics (profitability, liquidity, and security).Chapter4: Empirical Analysis. In this thesis, ROE is as a explained variable to measurethe market performance of commercial banks, comprehensive efficiency of commercialbanks and the degree of development of inter-regional as analyze variables, and bankproperty right structure as virtual variables. Meantime considering the characteristics of thecommercial bank itself, it selects the deposit-loan ratio, liquidity ratio and core capitaladequacy ratio and non-performing assets ratio as control variables. Finally, it builds amultiple regression model to make a comprehensive inspection, and concludes the factorsof affecting the performance of CBBs.Chapter5: policy and suggestion. Based on the conclusions, this thesis puts forwardfive aspects of countermeasures and policy how to improve the performance of CBBs inChina. Making clear the market position of CBBs, not overspreading blindly their subbranches, mainly local operation, and serving the local small and medium-sized enterpriseare the foundation for the development of CBBs. In the process of cross-regional operation,they should adhere to the differentiation strategy. For example, different types of CBBsshould have different modes of operation, such as increasing product innovation ability,enlarging the proportion of intermediary business income;,introducing of differentshareholder investment on the basis of in keeping the government stake, increasinghigh-quality personnel training, and improving the ability of personnel management.