The Research On The Competitiveness Of Commercial Banks In Our Country By Factor Analysis

Finance is the core of the modern economy, and the banking is the pillar industry of the financial circles. Along with the moment's arrival when financial transaction will be open all-sided after our country's entry to WTO by the end of the year 2006, the foreign bank will inevitably beach in China successively and launch keen competition with the domestic commercial bank. If the whole competitiveness of the commercial bank in our country can't be improved effectively, some serious problems that can influence the financial stability and even overall economic development may appear. So, it undoubtedly has sizeable academic and practical value that to carry on objective, overall analysis and appraisal to the present competitiveness state of the commercial banks in our country and make the effective tactics that can promote their competitiveness. Firstly, based on the general theory of enterprise's competitiveness, this paper explains the basic conception and characteristic of enterprise's competitiveness, makes clear the particularity of the commercial bank's competitiveness and defines its connotation. Furthermore, the author makes reviews and simple comments on the analytical method about the bank's competitiveness by scholars from China and abroad. These have offered theory support for the positive study of ensuing chapters. Then, on basis of referencing the present research results from domestic and international authoritative organizations and scholars, this paper designs one set of evaluating index system which is much more practical and scientific. In the part of positive study, this paper looks 4 state-owned, 11 joint-stock commercial banks in our country and 5 more powerful large foreign commercial banks in the world as research objects, and arranges them in an order by adopting factor analysis to confirm the weight of each index, which analyzes the competitiveness state of the commercial banks of our country in detail. The conclusion indicates that the whole competitiveness of our commercial banks is lower than the foreign banks' at large. At the same time, among the domestic banking, the joint-stock commercial banks, especially the listed ones, behave better competition advantage than the state-owned banks. Then, according to the positive analysis, the author finds out that the abilities of operation innovation, scale strength, development, risks controlling and corporation management are the key factors influencing the competitiveness of commercial banks. Besides, the author analyzes the disparity between the domestic and foreign commercial banks in these respects in detail. Finally, this paper accordingly puts forward a series of measures and strategies on basis of combining with the actual conditions of our commercial banks and drawing on the foreign banks' successful experience for reference, which establishes certain foundation for strengthening the competitiveness of our commercial banks and keeping their persistent development in a healthy way. The way that adopting factor analytic approach to evaluate the competitiveness of commercial banks will not only picture the competitiveness vividly and directly and provide very good technological method for the commercial banks in our country to evaluate their own strength, but also benefit themselves to take corresponding countermeasures in order to strengthen their competitiveness. We are sure that the improvement of the competitiveness level of our commercial banks will finally contribute to the steady development of the financial circles of our country.