A Summary Of Banking Business Performance Research:Theory, Methods And Practice In China

Finance is the core of the economy of a country in the modern economy,and banking play a dominant position in the financial system. The Bank plays a role in effectively allocating resources and promoting the development of the national economy, especially for developing countries such as China which has underdeveloped capital market. In fact, China’s banking sector began to grow rapidly after reform and opening up,and lots of city commercial banks and national joint-stock banks established. In addition, since2003the government take shareholding reform to state-owned banks, which effectively promote the sound development of the banking sector. Undoubtly China’s banking industry has made great progress through reform in all respects such as business philosophy.service level,talent construction and risk control,in which asset scale expands unceasingly and financial innovation has a significant improvement. However, compared to the western developed countries our banking industry has a large gap in capital strength, asset quality,product innovation,governance structure.Thus the performance of the commercial banks also need further improvement.The government and academic pay extensive attention to performance of commercial banks due to the important position of the banking sector in the national economy. Many domestic and foreign scholars have done a lot of research on performance of China’s commercial banks by foreign theories and methods,and get many achievements on banking reform.Firstly.this paper elaborate on theory of banking performance including traditional theory of industrial organization and corporation governance theory.Besides.we introduce some popular analytical methods for commercial bank performance study such as financial methods and frontier analysis methods commonly used in the performance evaluation. In the end,the article summarizes the conclusions of empirical research on commercial bank performance.Furthermore we pointed out the current problems in China’s banking performance study and future research directions.