Research Of City Commercial Bank Performance Based On Economic Value Added

Recent years, city commercial Banks are expanding by leaps and bounds.Asset scale increases quickly, and the position in the banking sector continue to rise.They have been becoming the powerful supplement to the large state-owned Banks and joint-stock commercial banks, and constituting a relatively complete system of bank with rural credit cooperatives, village Banks. Nowadays, China's economic growth slowed down,advance of urbanization continues,the interest rate marketization reform accelerates, counter-cyclical macro-prudential regulation framework is building step by step.Under those new situations, it is of great theoretical and practical significance to research performance of city commercial bank, dig out the key indicators of business performance evaluation and the basic factors which influencing the city commercial bank performance.This essay reviews the research about commercial bank performance evaluation and the key factors affecting the performance of commercial bank at home and abroad.At the basic of comparing the advantages and disadvantages of various commercial bank performance evaluation methods.The author thinks the Economic Value-Added index can reflect the real value-creation-ability and relieve the contradictions of principal-agent of commercial Banks. So this paper uses the Economic Value-Added index as the representative of the city commercial bank performance indicators.This essay select an optimal way to count the Economic Value-Added from three concrete calculate methods.Based on the financial data on annual report of sample city business banks from 2012 to 2015, this paper takes business innovation ability, asset quality, capital scale, operating efficiency and capital safety level into consideration to analyze the aspects that effect this evaluation system.The results proved that the relationship of city commercial bank's performance and equity capital,loan to deposit ratio is positively correlated,the relationship of city commercial bank's performance and non-performing loan ratio,cost to income ratio is negatively correlated.Last the author tested the statistical significance and economic significance, in order to provide the basis for city business performance management.