Performance Evaluation Of China's Commercial Banks Based On Empirical Studies

The unique nature of Business and asset liability structure has determined that general business management performance evaluation methods are applicable to commercial banks. In recent years, China's commercial banks are defined as a financial enterprise, and People's Bank of China has promulgated a number of applicable performance appraisal system for commercial banks. However, from the evaluation point of view, these systems lack of operability. As China's commercial banks speed up the pace as well as the increased openness of China's financial markets, establishing a set of social investors, commercial banks in the performance evaluation system has become urgent issues. For these reasons, this paper illustrate performance evaluations of commercial banks as the research object, in the relevant research-based with an emphasis on performance evaluation of the main indicators and methods of selection and model building, as well as the evaluation criteria and other issues explored in depth with a view to the study of the existing and sort out a new way of thinking.In this paper, we use empirical research and theoretical study of a combination of methods, a comparative analysis of the performance status of China's commercial banks. We give the reasons for performance differences and put forward proposals to solve the problem.This paper describes the nature of commercial banks, and performance evaluation of related concepts. In this paper has defined the performance evaluation system of building a commercial bank, followed by a brief review of enterprise performance evaluation system of the historical evolution process ,in order to draw on the theoretical performance evaluation of foreign enterprises results of research and practice. Through analysis of the theoretical circle of several evaluation models and practices of the commercial banking sectors at home and abroad, the existing performance evaluation systems for commercial banks provide some useful ideas and theoretical logic.Secondly, this evaluation method using single indicators to performance evaluate and compare commercial banks in terms of the profitability, safety and development capacity, China's commercial banks from the side to understand the operating conditions and difference. Decomposition of return on assets targets, specific analysis and comparison of changes in commercial bank profitability reasons. Studies have shown that China's commercial banks and joint-stock commercial banks, in many ways ,there is a gap, and the gap narrowing trend.Then, select the part of the financial indicators, build bank's performance evaluation system. The use of factor analysis method calculate the performance of commercial banks composite score on the performance of commercial banks, a comprehensive evaluation. The evaluation found that the state-owned commercial banks, joint-stock commercial bank performance and the gap between it and single indicators to evaluate the same conclusion.Finally, with the purpose of helping investors with decision-making, this article has shown the applicability and limitations of this model to evaluate and to make general concerns about the banks, while basic levels of performance should also be integrated, taking into account that national macro-economic factors also impact on overall performance of the banking industry.