Abstract: The base money has a relatively strong effect on the money supply. During the process of deposit money creation, changes of the base money will affect the operating performance of listed banks. In order to reduce the adverse effects due to the changes of the base money and enhance the business performance of China’s listed banks, the following measures should be taken, such as optimizing the size of the banks, responding to the changes of the base money, developing the intermediary business, avoiding the direct impact of changes of the base money, and so on.

Key words: base money; listed banks; performance