Bank Efficiency Analysis Of Commercial Banks Basing On Financial Statement Angle

The world famous British finance magazine’The bankers’published’Ranking of the best 1000 banks’in July 2014.Among them, ICBC (Industrial and Commercial Bank of China), with its＄207,614 billion of core capital,ranked first. And CCB(China Construction Bank), BOC(Bank Of China), ABC(Agricultural Bank of China) were all included in top 10.Under the background of financial crisis and the weak global economy, our commercial banks’excellent performance result in rapid growth in their international status, however, Chinese commercial banks operating efficiency increased or not needs to be discussed. Commercial banks are special enterprises operating currency commodity, its capital operation directly affects the whole social resource allocation’s efficiency. Therefore, for the precise measurement of the Chinese commercial banks’operating efficiency becomes extremely important.This paper will take the big four state-owned commercial Banks’(Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank) annual financial statements for the year 2011-2013 as the population, analysising operating efficiency with traditional financial indexes and comprehensive analysis method, to find out the factors affecting the operational efficiency of commercial Banks.First of all,summarizing current commercial banks operating efficiency analysis,pointing out the advantages and disadvantages of above method.Secondly, according to the requirements of commercial banks both in reality and theory, remodeling the operational efficiency system of commercial bank (both indexes and methods).By adding risk factors as supplements and reclassify existing indexes,using modified DuPont analysis and risk-income accounting model to reconstruct operating efficiency analysis method.Thirdly, according to the reconstructed operating efficiency analysis system and method, analysising the big four state-owned commercial banks operating efficiency. Using the results of the analysis to identify operational efficiency and profitability, find out factors affecting the operating efficiency. Finally, summarizing on the big four state-owned commercial banks operating efficiency, providing countermeasures and suggestions on operating efficiency improving. Through analysising of the operating efficiency of the big four state-owned commercial banks, helping the stakeholders of commercial banks to have an systematic and in-depth understanding of the operating efficiency and to provide objective basis.