Financial Performance Evaluation Of China’s Commercial Banks Biased On Empirical Study

As the significant important part of the financial industry, Commercial banks, play animportant role in the modern economy. With the foreign banks filing into Chinese financialmarket successively, the Commercial Banks of china will also be in a big environment whichis integrated of international financial; this will increase the competition between Chinesecommercial bank. The problem that Chinese commercial banks must cope with immediatelyis to improve their international competitiveness. Financial performance is the embodiment ofthe competitiveness of commercial banks, and is the key to the sustainable development of thefinancial industry. Improving the bank’s financial performance is not only the guard againstfinancial risks, but also the essential to promote the sustainable development of commercialbanks.This paper takes34commercial banks as research object, establishes the index system toevaluate the commercial bank financial performance of this paper that reflects the profitability,safety, liquidity and growth of the operating situation of commercial banks and choicescomparison analysis method and the factor analysis method to conduct this research on thebasis of existing research results by taking our current commercial bank performanceevaluation index system as the foundation, learning from the national and internationalresearch on commercial bank performance evaluation system and following the principle ofindex system to establish. In the empirical analysis Chapter, this paper uses comparisonanalysis method and the factor analysis method respectively to reseach and analysis theweighted average of the sample banks’ dates from the year2009to2011. These two kinds ofevaluation methods for financial performance evaluation of commercial bank play acomplementary role in this paper.The results from this paper show that the development ability of commercial Banks andasset quality can mostly affect its financial performance. local city commercial bank’sfinancial performance is the best of these three types of banks,national joint-stock commercialbanks is comparatively inferior, state-owned commercial bank is the worst, the polarization inthe financial performance of the local city commercial banks and the national joint-stockcommercial bank is serious, obvious differences are in a variety of abilities of these threekinds of banks, In terms of the performance of various types of commercial banks inprofitability, asset liquidity, asset security and development ability, the results obtained bythese two methods are consistent; and the rationality of the evaluation index system ofcommercial bank financial performance of the established has been proved. Finally,combining the results got from those two methods above, also considering the characteristicsof various commercial banks, the paper proposes to how to improve the financial performance of three kinds of banks. It considers that the state-owned commercial banks should reduce therate of bad loans, improve the ability of development and the overall quality of staff; thenational joint-stock commercial banks should strengthen the liquidity, profitability and thecapital adequacy, local city commercial banks should improve its profitability, reduce the rateof bad loans and enhane the growth.