Research On The Competitiveness Of City Commercial Banks In China

At present, as the financial reform with interest rate liberalization as the core furtherdeepens and social financing channels are increasingly diversified, the business modeland profitability of city commercial banks are confronted with a huge challenge. Thestrong rise of the Internet represented by third-party payment seriously impacts thetraditional business service concept, marketing channels and customer groups of citycommercial banks, whose business environment is now undergoing unprecedentedhistoric changes. Meanwhile, under the influence of the further abatement of economicgrowth rate and the structural adjustment, city commercial banks are faced with thepressure of credit risk exposure and risk management is up against a huge challenge. Theprofound change in financial system and financial market environment will subvert thetraditional financial model and competitive pattern and fundamentally threaten thesurvival and development of city commercial banks. Since city commercial banks arefacing the severe challenge of survival, it is not only imperative but pressing to deepenthe reform and innovation and accelerate the strategy transition. With the rapidlychanging competitive situation and the increasingly urgent transition and innovation task,city commercial banks are mismatching and unadaptable in terms of ideologicalunderstanding, system mechanism and strategic propulsion, and some city commercialbanks have insufficient understanding of the severity of the situation and the ruthlessnessof the competition, backward management concept and notion transformation,inadequate decision-making ability and management level, as well as declinedenthusiasm, momentum and perseverance. Besides, their phased and structural shortageof talent reserves is still not addressed effectively, managerial and administrativepersonnel and professional and technical personnel cannot adapt to the requirement ofrapid development in terms of quantity and quality, business license and businessfunction are relatively deficient, means of competition is single, the construction of themarket-oriented operation system mechanism is backward, and the business management,financial resource allocation and incentive and constraint policy are out of tune andimbalanced. All of these restrict the exertion and release of competitive vitality andcreative power to some extent. Under the wave of reform and opening up and in the post financial crisis era, how can China’s city commercial banks realize healthy andsustainable development among numerous financial institutions and continue to be themain force in the third echelon is a big problem city commercial bank managers andeconomic society are thinking about. Therefore, it is of great practical significance toconduct an evaluation analysis on the competitiveness of city commercial banks.This paper is composed of six parts that evaluate the competitiveness of citycommercial banks. Part One is the introduction of this paper. As the first part, Part Onefirstly introduces the background, purpose and significance of the research on thecompetitiveness of China’s city commercial banks; sets forth the theoretical and researchresults relating to competitiveness, reviews and evaluates the main opinions and contentsof domestic and foreign research on bank competitiveness on the basis ofcompetitiveness and enterprise competitiveness, and introduces the financial ecologicaltheory; and meanwhile points out the research contents, research framework, researchmethods, research innovation and shortcomings of this paper.Part Two is the overview of the competitiveness of city commercial banks. It firstlyintroduces the composition, changes and reform of China’s city commercial banks.Through the analysis of development history, it arrives at the current competitivenessstatus and problems of China’s city commercial banks, and then conducts a SWOTanalysis on the competitiveness of city commercial banks.Part Three is the analysis and design of the evaluation indicators of thecompetitiveness of city commercial banks. Firstly, analyze the current evaluationindicators of the competitiveness of city commercial banks; secondly, select27samplebanks by scale and regional location and determine the sample period at the same time;use for reference the establishment of commercial banks’ evaluation indicator system byforeign countries, combine the actual situation of China’s city commercial banks, adhereto the principle of integrated qualitative analysis and quantitative analysis,systematicness and hierarchy, and establish the competitive evaluation indicator systemfor China’s city commercial banks, which includes realistic competitiveness, latentcompetitiveness and environmental competitiveness. The evaluation indicators in thecriterion layer such as safety, mobility, profitability, development capability, scale,corporate governance, financial innovation, risk management, brand influence, talent quality, economic development environment, market development environment, andregulatory development environment are selected to conduct an analysis on sampleindicators.Part Four is the empirical analysis on the competitiveness of city commercial banks.By taking the commercial bank competitiveness theory and the establishedcompetitiveness evaluation indicator system of China’s city commercial banks as thebasis, conduct an empirical analysis on the evaluation indicators including realisticcompetitiveness, latent competitiveness and environmental competitiveness. Differentfrom previous empirical analysis methods, this paper adopts the method ofcomprehensive weight assignment, namely to utilize the clustering-AHP-PCA to carryout research and evaluation, and finally works out the composite score of thecompetitiveness of China’s city commercial banks and concludes the key factors thatinfluence the competitiveness of China’s city commercial banks and the degree of suchinfluence.By assets at the same time,regional location,different principle of divisions oflisted on the empirical results are analyzed,as well as the development of the citycommercial bank competitiveness posture.Part Five is the comparative analysis on the competitiveness of city commercialbanks and other types of commercial banks.On the basis of the same empiricalcondition,this paper selects three large-scale state-owned commercial banks, threejoint-stock commercial banks and three listed city commercial banks to carry out theempirical research on competitiveness, conducts a comparative analysis on the researchresults of the three types of commercial banks to obtain the comparative advantages andcomparative disadvantages of the competitiveness of each type of commercial banks, andfurther compares the overall competitiveness situation of different types of commercialbanks.Part Six is the countermeasures for improving the competitiveness of China’s citycommercial banks. As to the problems existing in China’s city commercial banks, thispart puts forward the macro and micro countermeasures for enhancing thecompetitiveness of China’s city commercial banks by combining the development statusof city commercial banks and the comprehensive analysis results of empirical research.Due to the particularity of city commercial banks, the competitiveness evaluation of city commercial banks has not gotten as much attention as it should. And for thedifficulty in collecting and sorting out data and other reasons, the research on thecompetitiveness of city commercial banks is seldom conducted in theoretical circles. Theauthor hopes that the research on the competitiveness of China’s city commercial banksin this paper could further supplement and perfect the modern commercial bankcompetitiveness theory and provide powerful theoretical support and policy basis for citycommercial banks to earnestly improve their competitive capacity.