Financial Performance Analysis Of Henan City Commercial Banks

In recent years,financial market has a intense competitive environment.if city commercial banks want to hava a development in this background,they should explore a suitable way.city commercial banks improve the regional economy,and support small enterprises to solve the problem of financing difficulties.those banks not only strengthen the construction of agriculture,rural areas and farmers,but also support the reform of economic system.At the same time,the development of city commercial banks is accompanied by some problems,such as inaccurate positioning of their own market,immature development due to short development time,weak competitiveness compared with other large state-owned banks in shareholding system,and poor financial performance level.Improving the financial performance level of city commercial banks can promote the healthy development of city commercial banks.Therefore,it is necessary to explore the index system and select an index model suitable for evaluating the financial performance level of city commercial banks.Through entropy analysis,it is found that the security,profitability and liquidity level of city commercial banks will have a certain impact on the financial performance level of city commercial banks.This paper mainly studies the financial performance level of city commercial banks in Henan Province.By referring to a large number of literatures it selects indicators from five aspects: scale,profitability,liquidity,security and development.Combined with the data of 2018-2020,it uses entropy method toevaluate the financial performance of city commercial banks in Henan Province.By analyzing the total financial performance score and five scores,it is found that the comprehensive financial performance score of bank of luoyang isthe highest among five city commercial banks in Henan province in recent three years,with a score of 0.3129.Through entropy analysis,it is found that the security,profitability and liquidity level of city commercial banks will have acertain impact on the financial performance level of city commercial banks.Then,Comparing the bank of luoyang with other central provinces’ city commercial banks.The bank of luoyang ranks second in the comprehensive score in 2020.Finally,several suggestions are put forward for Henan city commercial banks to improve their financial performance level: defining the development orientation and highlighting the characteristic services;Make a suitable developmentdirection according to its own scale;Actively formulate management countermeasures to deal with various risks;Accelerate financial innovation and improve profitability.