An Analysis And Evaluation Of Financial Statements Of Commercial Banks Based On CAMEL System

Commercial banks are the lifeblood of the modern social economic,it optimize the allocation of resources and enhance the economic efficiency of the community through the financial intermediation.In the new century,China's banking growth highly with the rapid development of China's economy;However,with the macroeconomic situation changes,the banking is now haunting by non-performing assets pressure when facing the economic downturn;In addition,China's commercial bank is now challenged by many factors such as capital market,Interest rate marketization reform,Internet financial innovation and so on.Faced with such a complex situation,both investors and management need to carry out an anlysis to the financial statements of commercial banks,so as to find out problems and seek improvements.However,commercial banks are so different from non-financial general business enterprises in there operating.Commercial banks absorption and delivery of money,and the conversion between currency and physical assets is unnecessary.Briefly,commercial banks rely on leverage for debt investment,make profit from different interest between deposit and loan,and the focus of the management are the balance between asset expansion and risk resistance,the balance between the rate of return on credit asset and the security of credit asset,the balance between capital using efficiency and capital maturity matchg.Accordingly,commercial banks' business is also showing a pro-cyclical,highly leveraged,high-risk,remarkable external effect and so on,thus the traditional financial statement analysis framework cannot effectively analysis and evaluation of commercial banks operating results.In view of this,this paper starts from the macroeconomic environment situation,through the PEST analysis and five force model analysis to explore which situation facing China's banking,then followed by the history of the development of China Everbright Bank,check the current equity structure,carry out the financial statements analysis of commercial banks to China Everbright Bank based on CAMEL system,and select the China Merchants Bank,Shanghai Pudong Development Bank as a reference object.Through all those comprehensive analyses,this paper analyzes the advantages and disadvantages of China Everbright Bank,find out the opportunities and challenges facing China Everbright Bank,and give the relevant optimization and development strategies through SWOT analysis.