Theoretical Analysis of Bank Performance: A Multi-Theoretical Perspective

Qianyu Mu

doi:10.54254/3049-5768/2025.20864

Research Article

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Published on 13 February 2025

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Mu,Q. (2025). Theoretical Analysis of Bank Performance: A Multi-Theoretical Perspective. Journal of Fintech and Business Analysis,2(1),16-22.

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Theoretical Analysis of Bank Performance: A Multi-Theoretical Perspective

Qianyu Mu *^,1,

¹ SEGi University, Malaysia

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/3049-5768/2025.20864

Abstract

This paper conducts a theoretical analysis of bank performance through the lens of three key theoretical perspectives: Principal-Agent Theory, Resource Dependence Theory, and Financial Innovation Theory. By examining their individual contributions and the conflicts or synergies among them, the study develops an integrative framework to evaluate and enhance the performance of urban commercial banks (CCBs). The Principal-Agent Theory emphasizes the governance and incentive alignment challenges specific to financial institutions, while the Resource Dependence Theory highlights the strategic management of external resources critical for bank success. Additionally, Financial Innovation Theory underscores the importance of adapting to and leveraging innovations in the financial sector. The synthesis of these theories offers a holistic understanding of bank performance, proposing actionable strategies for governance, resource optimization, and innovation adoption. This work provides both theoretical and practical implications for policymakers, researchers, and banking practitioners aiming to improve the competitive positioning and efficiency of urban commercial banks.

Keywords

bank performance, principal-agent theory, resource dependence theory, financial innovation theory, Urban Commercial Banks (CCBs), governance, financial strategy, theoretical integration

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Cite this article

Mu,Q. (2025). Theoretical Analysis of Bank Performance: A Multi-Theoretical Perspective. Journal of Fintech and Business Analysis,2(1),16-22.

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Journal：Journal of Fintech and Business Analysis

Volume number: Vol.2

ISSN：3049-5768(Print) / 3049-5776(Online)

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