Chinese Commercial Bank Management Efficiency And Influencing Factors

Modern commercial bank has become the most important financing institutions in the world economic activities, and become the fundamental and important component of countries’financial system. The main functions of modern commercial banks are credit intermediary, payment intermediary, financial services, credit creation and economic regulation. Whether they can well, fully play these functions or not is related to effectiveness and healthy development of banking sector in a country, and is also related to sustainable and healthy development of national economy in a country. Therefore, the performance of commercial banks is not only related to the operation of financial system itself, but also the development of national economy. At present, our country has formed a multiple competitive landscape with four state-owned commercial banks as the main body and with national joint-stock commercial banks, city commercial banks, rural commercial banks and foreign banks as supplements. Domestic commercial banks’ own competition has been very intense, and will face competition from well-known foreign banks of western developed countries. Therefore, banking industry’s competition in our country will be intensified. At the same time, with the advancement of marketization of interest rates and the innovation of banks’ products and services, traditional profit pattern rely on savings and loan spreads confronts daunting challenges now. In this case, it is necessary for domestic commercial banks to explore new profit growth point, foster strengths and circumvent weaknesses in terms of improving performance. In view of this, this article put forward and studies the topic about the performance evaluation of Chinese commercial banks and its influencing factors, and is intended to select the Shanghai A-share listed commercial banks to make empirical analysis. It has a certain theoretical and practical significance. Research methods used in this paper include theoretical analysis, comparative analysis, qualitative analysis and quantitative analysis and so on. And factor analysis is mainly used in the empirical analysis part as a kind of quantitative analysis method. It can reduce the number of indicators and avoid the complexity from correlation between some indicators, in order to reflect all the information of the performance of commercial banks with a small amount of indicators. Ultimately we can get the score of performance of Shanghai A-share listed commercial banks, and we can also make use of results from factor analysis to respectively compare the overall performance and the ability to reflect performance of commercial Banks. Through theoretical analysis and empirical analysis, this paper draws the following three conclusions about commercial banks’performance. Firstly, the steady growth ability has a bigger effect on performance. Secondly, solvency and profitability have equal effect on performance. Thirdly, improvement of deposit-loan ratio and capital adequacy ratio could obviously enhance solvency.On the basis of the analysis above, some suggestions to enhance the performance of commercial banks in china are given at last. Firstly, establish reasonable corporate governance structure. Secondly, implement a comprehensive risk management. Thirdly, strengthen capital management and improve the quality of capital. Finally, speed up the pace of financial innovation.