The Study On The Relationship Between The Scale And Competitive Ability Of Commercial Bank

As the globalization flooding the market limits between the sovereign states, the complicated and severe international competition becomes the basic characteristics of the present and future times. At present the international financial environment is more and more liberalized and globalized, every country is trying to find a develop-driving financial mode. Since 1990s the mergence surge of banks in the whole world seems to show the facts: In modern society, with the candescent financial competition, developing super-scale bank is not only a realizable choice but also an inevitable trend. The competitive ability of a bank represents its comprehensive ability, which also shows its surviving and long-term developing ability when the bank facing its competitors. This paper mainly analyzes and compares the competitive ability of different sizes of banks in order to study the relationship between the scale and competitive ability of a bank.In this paper the banks'competitive ability is divided into two parts—practical competitive ability and potential competitive ability. The practical competitive ability means the competitive ability which can be obviously embodied by the marketing achievement of commercial banks; while the potential competitive ability means the competitive ability which can not be obviously embodied but plays an important role in strengthening a bank's competitive ability. Hereby, this paper constructs an evaluating system for commercial banks'competitive ability. Combining the methods of determining the nature and the quantity, this paper makes a demonstration analysis for the banks'competitive ability of different sizes. The result of the comparison is that in China the large scale banks owned by the states are not stronger than the medium-sized and mini-sized ones; while in foreign countries the large scale banks are truly stronger than the medium-sized and mini-sized ones. Finally, it comes to a conclusion: there is no necessary connection between the size and the competitive ability of commercial banks.China has already joint in the WTO, the foreign capital banks is rolling in China. In 2006, our government calls off the restrictions to the foreign banks, such as capital of ownership, region and set-up-format. And Chinese commercial banks will face all-round challenge from foreign banks. Being the backbone of a nation, banks be defeated, the fate of the nation will be hardly predicted. Thereby at the end of this paper, in order to help our commercial banks take on the burden to win the foreign...