Based On Factor Analysis Commercial Bank Operating Performance Research

The unique nature of Commercial banking operations and structure of assets-liability determines that the general business performance evaluation methods are not applied to commercial banks. In recent years,Commercial bank as a class of financial enterprises had been defined its status.The PBOC promulgated some performance evaluation systems applicable to commercial banks.However,the systems lacked operability from the point view of the evaluation methods.With the accelerated pace of China’s commercial banks to be listed, as well as China’s financial market continues to open up,to establish a performance evaluation system of commercial banks suited for social investors,have becoming problems to be solved. In view of the reasons above, the Banking Business Performance Evaluation focuses on the performance evaluation of the main indicators and methods research,based on selection and modeling as well as evaluating the standard issues in depth to sort out a new way of thinking in existing research.In this paper,a method of combining empirical research and theoretical studies was adopted,which were used to compare and analyze comparative analysis of the performance status of China’s commercial banks,as well as find the reasons for performance differences and put forward some suggestions to solve the problem.Firstly, the related concepts of performance evaluation as well as the nature of commercial banks were introduced,and then,we analyzed several evaluation models of theoretical circles,followed by a brief review of the three modes of existing performance evaluation systems of the commercial banks,the current index system was also introduced,in order to provides a number of useful ideas and theoretical logics for building a performance evaluation system of commercial banks.Secondly,from the point of generated path of Commercial banks cash flow to compare the performance of the commercial banks by listing the three aspects of the direct financing capacity,loan management capability and operational capacity. Ten financial indicators were selected to build a bank performance evaluation system.Factor analysis was used to calculate the composite score of the performance of16commercial banks listed,a comprehensive evaluation of the performance of commercial banks, through the evaluation,the gap between the listed commercial banks was found.Finally,taking into account the feasibility and comprehensiveness,the paper put forward several counter measures and suggestions from the five aspects of loan risk management mechanism,financial innovation mechanism,bank and insurance coordination mechanism,non-performing assets disposal mechanism, optimization ecological environment to improve the operating performance of the commercial banks in China.