Study On The Operating Conditions Of City Commercial Banks InHenan Province

Zhengzhou bank is a typical city commercial bank in the midland. Just as the other city commercial banks emerged all over the country in recent years, depending on the flexible management and the adaptations for the local economy, Zhengzhou bank gradually expands its business scope and scale. However, on the market for Chinese banking, which is relatively closed, depending on the large scale and the rich experience of the market competition, the original big banks still keep the initiative. The vast city commercial banks, represented by the Zhengzhou bank, have been struggled to survive in the fierce competition. The key to achieve this goal is to enhance the bank’s operational efficiency.In this paper, the operational efficiency of the Zhengzhou bank is analysed and the bank efficiency of different categories of banks is compared. Based on this results, a accurate and comprehensive estimate of the operating efficiency of Zhengzhou bank. is given and the problems of the its operations are proposed. Consequently, the corresponding solutions and suggestions are presented. This paper chooses EDA methods, which are widely applied to non-parametric estimation, to measure and evaluate the level of the operating efficiency of the Henan city commercial banks. The author selected seven city commercial banks in Henan province which have complete data, and compared them with the state-owned banks, joint-stock commercial banks, and A-share listed city commercial banks. Meanwhile, by the same method of efficiency analysis, the author selected Zhengzhou bank, which is typical and operates across regions, to study its operation efficiency. Moreover, in view of the existing problems, the chances and the challenges in the development of Zhengzhou bank, the following suggestions are proposed. Firstly, enhance bank’s risk management in many ways. Secondly, expand the scale of banking operations. Thirdly, strengthen the development capability of banking business. Fourthly, improve the profitability of banks in many ways. Fifthly, improve its operating efficiency. Sixthly, enhance the capacity for financial products innovation. Seventhly, speed up the start of IPO.