A Comparative Study On The Performance Of Chinese Banks And Foreign Banks In China

With the rapid development of market economy, finance has become the core of modern economy. As the most important part of the financial industry, financial sector is the lifeblood of the national economy. As a consequence, the significance of banks’ development is not negligible.Interest rate liberalization is underway in full swing. Consequently, the era of profit margins alone has gone forever. Compared with Chinese banks, foreign banks in China have more advantages. As a result, Chinese banks have more competitive pressure from foreign banks in China. In order to make the Chinese banks keep up with the competition,this dissertation guaranteed the Chinese banks and foreign banks in China to stay in the same large environment--Chinese market. It analyzed the operating performance of Chinese banks and foreign banks in China to find out their differences, in order to give the corresponding suggestions for Chinese banks.Firstly, this dissertation adopted the way of literature review to overview a large number of commercial banks operating performance and its evaluation method of the literature. Through this way, it found a theoretical basis for the comparison between Chinese banks and foreign banks in China. Secondly, through comparative analysis, the comparison method and factor analysis method are chosen; and CAMELS Rating System is chosen combined with reality. Thirdly, select the data of 2012~2014 to carry out the comparative analysis of the three kinds of Chinese banks and foreign banks in China,including the comparative analysis of business indicators and factor analysis, which could get the score and ranking. At last, by comparing the difference between the three types of Chinese banks and foreign banks, with referring the results of the various business indicators, three types of Chinese banks will be given corresponding countermeasures and suggestions to improve their performance.After the empirical analysis, three factors were extracted and named as the safetyfactor, profit factor and liquidity factor. The conclusion is that from the score of the safety factor F1, the average score of foreign banks in China is higher than that of Chinese banks;in the score of Chinese banks, the score of state-controlled commercial banks is higher than joint-equity commercial banks, which are higher than city commercial banks. From the score of the profit factor F2, the average score of the foreign banks in China is lower than that of Chinese banks; in the score of Chinese banks, the score of state-controlled commercial banks is higher than city commercial banks, which are higher than joint-equity commercial banks. From the score of the liquidity factor F3, the average score of foreign banks in China is higher than that of Chinese banks; in the score of Chinese banks, the score of state-controlled commercial banks is higher than city commercial banks, which are higher than joint-equity commercial banks. According to the above conclusion and combined with various business indicators comparison results, it gave corresponding suggestions for 3 types of Chinese banks: the state-controlled commercial banks,joint-equity commercial banks, city commercial banks. By this way, it realized two methods of mutual inspection, which also mad the conclusion of this dissertation,analysis of the causes, countermeasures and suggestions of more all blend into one harmonious whole.