China Commercial Bank Performance Evaluation

The 21st century, International banking industry has entered an era of global competition. Commercial banks of China face not only domestic competition with industry, but also international banks severe challenges. How to make commercial banks of China want to enhance the competitiveness, scientific and rational assessment of the true performance of commercial banks is crucial. In recent years, performance evaluation of commercial banks of China have become the hot issues of common concern between banking industry and academia. The dissertation try to use EVA methods for empirical study and analysis of performance evaluation of commercial banks of China.The dissertation simple summarize related based theory. For example performance, performance evaluation and the theory of EVA. Reference of the Scholars from home and abroad in a wide range of research results, bring forward the EVA methodology to be necessary and feasible in our country. And then in according with the applicable adjustment EVA model, calculating 11 commercial banks EVA value in our country. Using weighted least square method to find the main driver factors. And proposed to improve the performance of commercial banks of China corresponding proposal.Based on the basic model of EVA and the specificity of commercial banks of China, respectively adjust the three key variables :the net profit, the total amount of capital and the cost of capital rate. To obtain the applied EVA model in China. Subsequently, on the basis of 2005-2007 three-year website of the bank disclosed in the audited financial statements as the main source of data, we estimate the 11 commercial banks from 2005 to 2007 of EVA and REVA. The results showed that, although the overall REVA upward trend, the REVA are mixed the good and the bad; considering the cost of capital to shareholders return was significantly lower than the traditional indicators; Discounting scale factors, the small and medium-sized banks have better operating performance than the four major state-owned banks. This is the small and medium-sized bank with strong competitiveness of one's performance. Then, according to scientific and operational, this dissertation select eight indicators, namely total assets, the ratio capital adequacy, the ratio of investment in fixed assets, operating expenses rate, loan-to-diposit ratio, the ratio of non-performing loans, five home ownership ratio, executives remuneration per capita. With a focus on targeted selected 11 commercial banks in China from 2005 to 2007 data, as empirical research samples for analysis. The results showed that only the ratio of capital adequacy, the ratio of non-performing loans, the executives remuneration per capita impact on the REVA is remarkable. Accordingly, the dissertation in accordance with the results of empirical analysis is proposed to improve the performance of commercial banks of China corresponding proposal.