Overall Competitiveness Rating For China-us Large Commercial Banks Based On Balanced Scorecard

Since China's accession to WTO, commercial banks competition has become in the focus of much attention. It shows the increasingly fierce competition which China's commercial banking industry is facing going out of domestic issues and the impact of the issues of foreign banks. Because China's commercial banks which were specialized banks in the original system is based on the conversion made. currently, in many areas of commercial banking business is also basically in the exploration, it has not yet unfolded in depth between Commercial Bank competitiveness theory and practice of development work. With the foreign banks on the continuous expansion of RMB business, the infiltration of foreign banks management methods and business model are strengthened, the gradual integration of the domestic banking sector to international competition is reinforced, It has necessity to propose research of actively carrying out international commercial banking industry's competitiveness Evaluation. Therefore, the objective, scientific and reasonable evaluation of the competitiveness of commercial banks will be to improve the overall competitiveness of China's commercial banks and strengthen the level of participation in international competition awareness and promote the common progress of other financial institutions.The competitiveness of commercial banks are the study of an important subject of management studies. As the Balanced Scorecard are used and popular in a growing number of large companies, it provides a basic use to study the competitiveness of banks. Therefore, this paper introduces the Balanced Scorecard theory, from the financial indicators, customer indicators, indicators of internal processes, learning and growth perspective of four capacity indicators, we can use comparative analysis in-depth of the competitiveness of China-US commercial banks. In this paper, the competitiveness of domestic and foreign banks and the balanced scorecard evaluation of the theory of literature are researched comprehensively and in-depth, at the conclusion of experts and scholars at domestic and abroad, we propose competitive framework of banks based on the balanced scorecard, and select the framework of the quantitative indicators for quantitative analysis. Based on the quantitative analysis, by the use of gray relational analysis, we use the balanced scorecard indicators of factors associated with the various analysis of the overall China-US commercial banks on the overall competitiveness of the analysis, we can find the strength of competitiveness that between the China-US large commercial banks. In reaching the merits of the order of competitiveness, this paper has on the overall competitiveness of the banking sector caused by the China-US differences in the specific analysis of the Balanced Scorecard factors, and identify the issues affecting the banking industry overall competitiveness of the China-US influencing factors, so as to make certain methodology of the management of China's banks.Following comparative analysis we can find that China's banks are enhanced the overall competitiveness significantly over the past two years of development, it has been obviously strengthened in the weighted net return on capital employed and non-interest income and a significant improvement in the level of risk management; the United States large commercial banks still have large gaps in non-interest income and loan quality, while Bank of America's competitiveness are influenced by the U.S banking credit risk and risk of large scale. Comparative analysis of 2005 and 2007 data, we find enhance the competitiveness of China's commercial banks faster, while the competitiveness of U.S. banks have been greatly weakened.Aim to analyze the findings, China's commercial banks should focus on two-pronged approach, one is how to improve non-interest income from the analysis of the United States large commercial banks, the analysis of non-interest income can provide a guideline of innovation in China's banking industry. Second, by the credit risk analysis of the United States large commercial banks, we can learn how to construct credit system of China's banking sector to provide experience and lessons learned.