The Competitive Power Evaluation Of Chinese Commercial Banks

Nowadays, in the situation of the fast development of economy globalization and finance integration,China needs to make its commercial banks more competitive if China wants to become a powerful nation ineconomy and finance. Commercial banks in our country should face different kinds of competition strengthwhich is not only come from domestic commercial banks but also from foreign capital banks. In the tide of thefast development of economy globalization and finance integration, the contemporary finance theory and theinformation technology are fast developing and more and more finance creations are arising. Because of this,the finance market is becoming more fluctuant. Therefore, to evaluate and analyze commercial banks in Chinareasonably and generally would have great effects on the strength improvement of banking and the healthydevelopment of finance industry.This paper is aim at the deficiency of the current evaluating standard system. In order to build up areasonable and general evaluating standard system, in this paper, some qualitative standards were used as ascale on evaluating the competitive strength of banks, and VaR standard was used to analyze the risks whichthe commercial banks are facing. On the other hand, in order to build up a general model to evaluating thecompetition strength of commercial banks, analytical hierarchy process and entropy weighting method areused together. And finally, the model is used to analyze the commercial banks in China which are come intothe market, and some advices are arisen for the competition strength improvement of commercial banks inChina.