Research On The Evaluation System Of Commercial Bank's Profit Quality

With the development of China's capital market,the phenomenon of financial disintermediation has become more and more fierce,making it less necessary to circulate through banks.The pressure on deposits and loans that the banking industry relies on is gradually increasing,and the competition among banks is becoming increasingly fierce.In recent years,the state gradually liberalizes the control of interest rates,which further amplifies the competition among banks,especially for domestic joint-stock commercial banks,which face increasing risks.But its comprehensive strength and competition ability is not enough to cope with a tough environment.In the context of domestic situation,the assets of the five state-owned banks are huge,and at the same time,a group of high-quality foreign banks are entering China's financial market gradually.The domestic and foreign competitive environment pose a big threat to the development of joint-stock commercial banks in China.In order to cope with the current fierce competition environment,the solution to the problem is to improve the comprehensive strength of joint-stock commercial banks as soon as possible.The core of all these problems lies in the continuous optimization of the profit quality of commercial banks,among which the top priority is how to evaluate the profit quality of commercial banks.Profits are the foundation of banks based on financial markets,while domestic banks are profitable.High profit and low efficiency have always been the focus of the market.As a listed company with close relationship with the people's vital interests,scholars and the public have not paid enough attention to the quality of commercial banks.In the past,most scholars studied the profitability of banks,and analyzed the factors behind the high profitability of banks.The analysis of profit quality is mainly used for ordinary enterprises in listed companies.The evaluation of the use of profit quality in the context of commercial banks has not been fully obtained attention.Therefore,this paper applies the evaluation system of profit quality to the bank's financial statements,which satisfies the needs of decision makers to make scientific decisions better.Based on the current situation of China's commercial banks,this paper discusses the optimization of the profit quality evaluation system over the previous commercial bank's profit evaluation methods,from six aspects:authenticity,profitability,sustainability,liquidity,growth and structure.This paper also use the principle of AHP to determine indicators and construct a scientific and reasonable commercial bank profit quality evaluation systemcomprehensively.In order to reflect its extensive application in practice,this paper selects GD bank as the case study object and analyzes its profit quality changes and financial operations from 2015 to 2017.At the same time,in order to reflect the position of GD bank's profit quality in the whole banking industry,nine commercial banks were selected as horizontal comparison objects,and the application of the evaluation model was fully displayed in three dimensions,which provided a reference for evaluating the profit quality of commercial banks.