The Evaluation Of China’s Commercial Banks’ Financial Performance

The financial industry is the core of the national economy, and banks are themainstay of the financial sector. Therefore, it is a common focus for the theoreticalcircle and the banking sector that how to accurately evaluate the performance ofChina’s commercial banks so that to improve their core competitiveness. As a specialenterprise, bank is either a significant support of the national economy or plays anvital role in the socio-economic development.Recently, with the development of the financial industry, the progress of bankshad widespread attention by all sectors of society.The joint-stock commercial banksgradually began to go international which corporate governance and risk controlability has been significantly improved, and the structure of assets and asset qualityhas been further optimized, the ability to withstand risks has been enhanced.Itoccupy an increasingly important position in the banking system.But most people arenot familiar with the actual situation of the banks, and do not know the financialperformance of banks well. This article’s research object is commercial banks.Afinancial index system will be constructed for large commercial banks, joint-stockcommercial banks and city commercial banks to analyze the commercial banks’financial performance.This article is divided into the following five sections:The first chapter introduces the background and significance of this study,theresearch content and research framework.The second chapter describes the commercial banks’ financial performanceevaluation indicators and the related concepts which lay the foundation for theevaluation of china’s commercial banks’ financial performance.The third chapter, analyze the16listed commercial banks’ financial data fromfour aspects: Profitability indicators, safety indicators, liquidity indicators and growthcapability index.Chapter IV, on the basis of the above four chapters, use the method of factor analysis to construct a model for the three types of commercial banks. Throughanalyze the model to find out shortcomings of China’s commercial banks financialperformance.The fifth chapter, based on the full analysis of the text, proposed summaryconclusions and recommendations to improve the financial performance of China’scommercial banks.