The Research On The Operating Performance Evaluation Of Commercial Banks Based On Panel Data

With the development of Chinese economics, the financial industry has achieved unprecedented development. Commercial bank, as the main character of finance, has played a pivotal role. The performance of commercial banks is not only related to the operation of the banking system itself, but also related to the development of the national economy. Further reform of financial system makes China's banking system increasingly perfect. Our banking industry began to implement overall opening to the outside world at the end of 2006, makes China's banking industry facing a new round of opportunities and challenges now.In order to remain invincible in the fierce market competition, commercial banks should evaluate and analyse their operating performance, make comprehensive evaluation on the profitability, liquidity, security and growth. What's more, they should grasp China's commercial banks operating status in current stage and find their existing problems and deficiency, and then explore targeted measures on improving the performance of China's commercial banks, to enhance the core competence and promote its sustained healthy development.This thesis is based on the related literature's induction. It studies the related operating performance evaluation theory of the commercial banks, and establishes a theoretical framework of comprehensive evaluation based on panel data. It builds a four-aspects evaluation index system covered the profitability, liquidity, security, and growth of commercial banks. It studies all series dimensionless methods, index weighting method based on entropy and time weighting method based on "time degree" on panel data. This thesis analyses China's 16 listed commercial banks operating performance of six years based on the characteristics of the panel data combined with grey relational evaluation model, which shows that the overall level of operating performance in China's joint-stock commercial banks and city commercial banks is higher than China's big five state-owned commercial banks during 2008 to 2013. However, each bank's operating performance is quite different between joint-stock commercial banks. The ranking fluctuation is greater than state-owned banks and city commercial banks. From four aspects of commercial banks performance evaluation, each of the three kinds of commercial banks has its advantages. The state-owned commercial banks have better liquidity, while the joint-stock commercial banks do well in profitability and security management, and the growth of city commercial banks is the advantage of its performance evaluation. Through the comprehensive evaluation and sorting, and analyses the existing problems of Chinese commercial banks operating and management, then elucidates the reasons of performance differences between commercial banks, the thesis finally puts forward some targeted suggestions to improve commercial banks' operating performance.