Quality Evaluation of China’s Commercial Banks’ Profits
|School||Shijiazhuang University of Economics|
|Keywords||Commercial Banks Profit Quality Evaluation Factor Analysis|
The banking sector in the national economy in a position to affect the situation as awhole. In2010, China’s banking financial institutions, after-tax profit of899.1billion yuan,an increase of34.5%, which indicates that China’s banking institutions have made someachievements in the development of business. However, behind the pursuit of growth in thenumber of high-profit, China’s banking financial institutions also exposed the weakprofitability, the profit structure is irrational aspects, ignoring the quality of profits toupgrade and improve.The quality of commercial bank profits is a commercial bank with a certainprofitability, the profit structure is scientific and reasonable profits security for security andsustainable growth. China’s commercial banks profits quality level is not only therelationship between the level of income, but also directly affect China’s financial securityand mobility, and even affect the future of sustainable development. Therefore,strengthening the research and exploration on the quality of the theory of China’scommercial banks’ profits, profit quality evaluation system, and enhance the quality ofChina’s commercial banks profits to improve their financial situation is very necessary.In this paper, the concepts, features, research base on the quality of China’scommercial banks’ profits from the macro, meso and micro levels on the quality of China’scommercial banks profits factor analysis of selected financial indicators to build acommercial bank profit quality evaluation system, take the factor analysis method toresearch on China’s commercial banks profit quality evaluation system, and then acomprehensive evaluation of the quality of the profits of China’s commercial banks.Analysis of the results, ranking and earnings per share of individual banks and the profits ofthe industry as a whole the quality of the analysis, validation of the model from an point ofview, provides help for business decision-making, management of commercial banks ofChina has a certain reference value. Last three innovative proposals on how to improve thequality of China’s commercial banks’ profits, including force commercial banks toimplement green credit, green is not lending; strengthen the importance of socialresponsibility of the commercial banks; suggested that the regulatory authorities toestablish the profit quality assessment index system periodic assessment of commercialbank profits quality status.