Financial Performance Evaluation of Chinese Listed Commercial Banks

Yanli Zhu^{1, 2}, Yutian Wu^1, and Yingnan Sun¹

¹Business School, Institute of Industrial Economics, Hohai University, Nanjing, Jiangsu 211100, China

²Fujian Provincial Key Laboratory of Statistics, Xiamen University, Xiamen, Fujian 361005, China

Cite this paper:
Yanli Zhu, Yutian Wu and Yingnan Sun. Financial Performance Evaluation of Chinese Listed Commercial Banks. Journal of Finance and Economics. 2018; 6(5):186-192. doi: 10.12691/jfe-6-5-4

Abstract

In the context of China¡¯s economic New Normal, the operating environment of China's listed commercial Banks is facing great changes. It is urgent for Chinese listed commercial banks to improve their financial performance so as to enhance their core competitiveness. This paper applies the factor analytic approach to assess the financial performance of 15 Chinese listed commercial banks, including 4 state-owned commercial banks, 8 national joint-stock commercial banks and 3 local city commercial banks as the object of our study. In this paper, a new financial performance evaluation system is constructed based on the financial data for these banks. A comparison of different types of banks and different banks of the same type is also conducted. Based on the comparison results, some suggestions are further provided to solve the current problems.

Keywords:
listed commercial bank financial performance factor analysis

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