ABSTRACT
Considering data availability, original sample data of this paper comes from the annual report data of listed commercial banks on financial websites, in newspapers as well as the “China financial yearbook”. 11 listed commercial banks in the A-share are finally selected as samples. They are five large commercial banks: Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, and Bank of Communications. Four joint-stock commercial banks: China Citic Bank, China Merchants Bank, Min Sheng Bank, and Societe Generale. Two city commercial banks: Bank of Beijing and Bank of Nanjing. Chapter 4 of the “Commercial banking law of the People’s Republic of China” describes: “commercial banks set security, liquidity and profitability as the management principle[2]”. This paper considers these three principles comprehensively
1 INTRODUCTION
As China’s economic system reform deepens gradually, as well as the change of external environment such as China’s accession to the WTO, China’s commercial banks are facing unprecedented competitive pressure. Improving the management method of commercial banks, building effective performance evaluation system and improving the performance of commercial banks are the key problem for the sustainable development of China’s financial sector and are also the basic requirement to the challenge of foreign banks.
