An Analysis On The Performance Evaluation Of The Commercial Banks In China

As China's monetary had opened to foreign investment, China's commercial banks face increasing intensified pressures. Foreign commercial banks had a long history, in terms of domestic commercial banks ,it had a numerous advantages capital, management, product innovation, and scientific and technological. This paper hopes through objective and accurate evaluation on China's commercial banks operating performance , various commercial banks can exactly know the condition of itself, understanding the gap with other banks, particularly with the foreign commercial banks .And these bank can analysis the cause of these problems. Then they can improve management, prompt the core competitiveness ,so that they can ensure the competition forever.This paper first described the concept of performance and performance evaluation of related concepts ,describe the special features of the commercial banks and the banks performance evaluation and define it meanings. This paper reviewed the method of the commercial banks performance evaluation, also propose some comments, support the analysis. Then, based on the referred authority institutions and scholars a have the author build the bank operating performance evaluation system from the profitability, liquidity, security, and development.This paper had preferred four state-owned commercial banks and 10 joint-stock commercial banks as the sample of the empirical analysis. The author using factor analysis identified each evaluation index weight, and use the result of the analysis, of factor analysis in the operating performance evaluation from profitability, liquidity, security, and development. Empirical analysis of the results showed that the Industrial and Commercial Bank, Bank of China operating performance after go to the stock market. These banks's profitability, safety and other aspects has been noticeably improved, the overall operating performance has caught up with the middle the level of such joint-stock commercial banks. While the Agricultural Bank, was worst, cause of profit and safety .Traditional financial indicators did not consider the opportunity cost of capital and risk, in order to cover these deficiencies ,and can be more comprehensive and complete to evaluate the commercial banks operating performance, the paper refer EVA return rate as the evaluation index. This paper analyze the commercial banks EVA return rate from 2004 to 2006. Get the conclusion that: state-owned commercial banks operating performance after listing shares market, but EVA return rate, of state-owned commercial banks had decreased. state-owned commercial banks The ability of create value may be weaker than joint-stock commercial banks. The improve of the operating performance may be from external factors, state-owned commercial banks operating in the future should pay more attention to improve the ability of endogenous growth.Finally, based on the results of the empirical analysis ,the author propose some suggestion, from the targeted of business innovation, risk management, strategic market positioning and human resources, to improve the performance of these banks. Will can help these banks.