An Analysis Of The Performance Of State-Owned Commercial Banks

The performance of state-owned commercial banks as the key pillar of our banking industry, is not only indispensable to the sound operation and development of bank system, but also of great impact on the operation of the whole macro-economy. However, the problems arising from state-owned commercial banks in China, such as low competitive power, poor management level, deficient finance innovation, higher bad debts and increasing bank risks etc., are closely bound up with the improvement for the performance of the above-mentioned banks. This thesis is focused on the questions as follows: How to evaluate the performance of the state-owned commercial banks? What is the difference between the performance of state-owned commercial banks and that of joint-stock banks? What are the causes of forming the differences? What shall we do with the performance of the above-mentioned banks?Based on the combination of numeric and nonnumeric research, comparison and induction, this thesis analyses the status quo of the performance of state-owned commercial banks and the cause of forming the problems, and then puts forward some solutions to improve the whole performance of state-owned commercial banks.The main structure of this thesis is as follows:Chapter One elaborates the main evaluation methods about the performance of commercial banks all over the world, including the methods adopted by financial institutions at home and abroad to evaluate the performance of commercial banks, and the theoretical and empirical research of some scholars in China.Chapter Two mainly analyses the status quo of the management of state-owned commercial banks of our country. By analyzing the amount of the assets of the whole commercial banks and that of deposits and loans in China, this chapter reveals the status quo of market monopolization of four major state-owned commercial banks based on CRn Index and Herfindahl Index. By analyzing the amount of profit, Return on Average Capital (ROA) and Return on Assets (ROE), it points out the status quo of market operation of four major state-owned commercial banks.Chapter Three first presents the empirical analysis of the performance of state-owned commercial banks by adopting econometric and statistic methods, and evaluates the performance based on the following aspects: quantifying social contribution of state-owned commercial banks based on the analysis of four single factor linear regression and comprehensively evaluating the performance of four major state-owned commercial banks by establishing the comprehensive model combining commercial performance with social contribution performance. And it draws the conclusion that state-owned commercial banks are playing an important role in keeping our economy sustaining, steady and growing with high speed, however, as the result of low-efficient management wholly, the performance of state-owned commercial banks are still at a very low level.Chapter Four presents the main reasons why the performance of state-owned commercial banks is generally far from being good, which include not only low managerial level within state-owned commercial banks itself and low efficiency of management but also economic and financial environment as well as laws and regulations environment.Chapter Five, aiming at the causes analyzed in the previous chapter presents the corresponding countermeasures and suggestions, which include three major respects, namely, raising the ability to develop and operate state-owned commercial banks, perfecting the management structure of state-owned commercial banks and improving the external environment of state-owned commercial banks.