Analysis And Responses Of The Factors Of Chinese Small Commercial Banks' Core Competitiveness Ability

Following China's accession to the WTO and the financial industry to the outside world, the small commercial banks also face a tremendous challenge. How to improve their competitiveness and achieve greater development in the fierce competition is a topic for many finance theorist and real worker. The author attempts to prove the factors of Chinese small commercial banks'core competitiveness ability according with factor analysis method and the theory of the core competitiveness in management.First, after analyzing the general bank-scale standard, the author points out the definition of Chinese small commercial banks and reacquaints the role of the Small commercial banks in China's financial reform.Secondly, according to the theory of the core competitiveness, the author sets up a core competitiveness model of our small commercial bank. Comparing with four major state-owned commercial banks, the author analyzes our core competitiveness ability status of small commercial bank status and constructs suitable core competitiveness indices.Next, the author collects 10 joint-stock commercial banks data in 2004 as representatives and finds out the six potential factors of observation variables with the help of statistical software SPSS 11.0. Then the paper concludes six factors of Chinese small commercial banks'core competitiveness.Finally, the author makes five responses: Bank mergers and acquisitions of strategic investors; strengthening the financial technology innovation; using assets securitization technology; developing vigorously intermediate business; establishing a "customer-based" management system; setting up a unique corporate culture.