The Performance Evaluation Of China's Commercial Banks Based On Factor Analysis

It is a systematic project to evaluate the performance of commercial banks.The performance of commercial banks not only affects the development of banks,but also has a far-reaching impact on the entire financial system.Since 2017,China's economy has entered a new normal state.With the slowdown in economic growth,the performance of the banking industry has also been a lot of problems,which need to be faced urgently.For a long time,China's commercial banks speed,light quality,resulting in commercial banks there are many problems in the process of operation,such as the management level is not high,the lack of financial innovation,too many bad debts,the quality of staff is not high,adversely overstaffed to their development.At present,the management of many commercial banks of our country into the difficulties faced with various problems,more and more,from home and abroad and the uncertainty of market risk,have a very big impact on the performance of commercial banks.Therefore,under such circumstances,the new normal commercial banks must focus on improving operational performance.This paper uses factor analysis method to evaluate the performance of 25 listed banks in Shanghai and Shenzhen in 2016.Through the inspection and reviews the related literature and research,including research on the situation of our country and abroad,and the related concepts are analyzed,pointed out that the concept of commercial bank performance evaluation and construction principle of commercial bank performance evaluation index system are described;secondly,the performance evaluation procedure based on factor analysis,and then from the construction scale,profitability,safety,liquidity and growth of the index system,the data collection and processing are described,and the Bartlett ball test and KMO test;thencalculated the characteristics of each variable value and feature value and contribution rate The cumulative contribution rate,it constructs the factor loading matrix rotation,and describes the various factors of economic significance;then establishes the factor score function,and factor score ranking by simple calculation;finally the paper involved the content of a more comprehensive summary and this paper puts forward some practical suggestions for the performance evaluation of commercial banks,and points out some deficiencies of this paper,and prospects.Through factor analysis,to evaluate the performance of the 25 listed commercial banks,through the comprehensive ranking,you can see,the joint-stock bank performance than state-owned commercial banks,the comparison on the city commercial bank.The single factor analysis,city commercial banks by comparison in growth factors,joint-stock banks and state-owned commercial banks by comparison in the profitability factor and scale factor,and in terms of security,compared with the state-owned commercial banks,followed by joint-stock banks,the city commercial banks.From the individual factors,growth factors,some local banks,city commercial banks ranked high,the future development is better;the profitability factor,still in the joint-stock banks,state-owned commercial banks,city commercial banks slightly poorer performance;in scale factor,five joint-stock banks compared with other commercial the bank still holds absolute advantage;while in the safety factor,ranking are listed earlier,they have rich experience,strict control of non-performing loans,increase the loan management,so the performance is better.