Empirical Research On The Competitiveness Of Listed Commercial Bank Of China

The economic structure makes the openness of the banking sector domestic lower, and the commercial banks are not subject to the impact of competitive pressures from foreign banks. With China's accession to the WTO, more and more foreign banks enter China's financial markets. In 2007, HSBC, Citibank, Standard Chartered Bank and Bank of East Asia started to enjoy the national treatment, which will bring about greater competition. The subsequent financial crisis had a serious impact on China's banking industry. Studying competitiveness of China's commercial banks has important practical significance. It will help to promote a comprehensive understanding of the commercial banks, improve performance and enhance competitiveness.In this paper, we select 14 listing commercial banks listed before 2007 as the study sample, and use the integrated index evaluation method from the liquidity, profitability and safety to examine the competitiveness of commercial banks, and analyze the comprehensive competitiveness. We use AHP and entropy method to determine the weights of each index. AHP is full account of the expert knowledge and experience, but still could not overcome the shortcomings of higher subjective and arbitrary. And entropy is a completely objective way. Combination of these two methods can use their own advantage. This paper confirmed the comprehensive evaluation weights of each index and build competitiveness evaluation model.Using the above model we analyze competitiveness of listed commercial bank in China between the year 2007 and 2009. The results show that the influence of financial crisis is very obvious. The liquidity of banks in 2008 decreased compared to 2007, but improved in 2009, and state-owned banks had stronger capacity to overcome the crisis. Because of the financial crisis, the profitability of the banks had changed, and state-owned banks showed a strong growth potential. State-owned commercial banks and joint-stock commercial banks were not the same competitive characteristics. The joint-stock banks showed a clear advantage in the security, the state-owned banks is relatively stable in terms of safety. State-owned banks showed a strong comprehensive strength. Overall, the competitive advantage of state-owned banks is still very obvious. In this paper, we raise the related recommendations for improvement according to these findings.