A Study On The Performance Of China’s City Commercial Banks

City Commercial Bank is the Bank of China’s banking industry. The number of the most, and it is also an important part of China’s banking industry. Its development has gone through three stages, stage, stage of city, city credit cooperatives cooperative banks in the stage of city commercial banks. As local financial institutions, urban commercial banks, plays an irreplaceable role for the sustained and healthy development of the local economy. In accordance with the relevant commitments of China’s accession to the WTO, in the end of 2006, China’s banking industry comprehensive opening to the outside world, competition among banks, city commercial banks in China need to face the challenges of domestic and foreign banks.The ownership structure of city commercial banks Chinese has obvious characteristics of local government directly or through concerted action of ginseng stock, has important significance to research the relationship between ownership structure and performance of the bank and its mechanism of action.China’s city commercial banks due to various reasons, the low-end smaller assets, non-performing loan ratio is still high, the level of net profit in the whole banking industry, these disadvantages limit the development of city commercial banks. In addition, city commercial banks as a local commercial bank, its development is affected by the local government administrative intervention, the level of local economic development. Therefore, compared with the large commercial banks and joint-stock banks, there are a lot of disadvantages and shortcomings, in order to survive and develop in the fierce environment of market economy, we must continuously improve the performance of city commercial banks.In order to improve the performance of city commercial banks in China, this paper mainly from the two aspects of ownership structure and innovation ability how to enhance the performance of the bank. For city commercial banks in our country, the first major shareholder is the local government and related institutions, the characteristics of ownership structure is the local government and financial institutions and state-owned asset management institutions directly or through a "concerted action" absolute or relative holding characteristics of city commercial banks. Therefore, between the research of city commercial banks ownership structure and performance of the relations is of great significance.In the course of the study, using the related data of China’s listed city 2006-2012 255 commercial banks, at the same time, with reference to the research methods of the scholars at home and abroad, constructs the conduction mechanism and the regression model between ownership structure, the innovation ability and the city commercial bank performance. In addition, in the formation of innovation ability of city commercial banks internal mechanism, the innovation ability is how to affect the performance of China’s city commercial banks, city commercial banks mainly analyzes the influence on the performance of innovation ability. The empirical results show that: the nature of equity of city commercial bank is a kind of attribute, the corresponding dummy variable may be better; city commercial banks in the proportion of the first shareholder and performance is significant negative correlation between the ratio of one or two; reflect the shareholding proportion of the largest shareholder of the Z index and the city commercial bank performance is significantly negatively correlated; city commercial bank the ten largest shareholder equity ratio(CR10) was positively correlated with the performance.