Research On The Competitiveness Of Chinese Commercial Banks In Banking Open Transition Period

2005-2006 is the last moment for Chinese Banking Industry developing. Along with China's reforming the current financial structure, especially approaching the end of the banking opening up and transition period, the Chinese Banking Industry is facing many challenges and opportunities. These challenges and opportunities are based on the living environment of Banking Industry is deeply altering. A comprehensive analyzing and judging to the current competition situation of the Banking Industry and a set of strategy to improve this situation is no doubtfully very significative for both theory and practice.This article following the "Bringing - Analyzing - Solving" steps, according to the researching about bank competition, referring to the econometrics' gene analysis, brings out a set of applied guideline system to perform the core task and the competition of financial intermediation. This study then compares the performance of China's state banks, joint-stock banks, and city commercial banks along these measures, and gives out the result of both monomial and integrative evaluating result. In the end, the paper uses the principal component analysis to analyze a general sense of the Chinese banking sector's performance in the fore and terminal of the transition period separately. The Article describes the reasons of commercial banks' performance enhancement, and points out the weakness places in competition in the same time during the terminal of the transition period. Based on these, this article in the end aiming at the problems puts forward a strategy to improve the competition ability before the coming of banking industry's opening. Hope it is referenced to the developing of China's banking industry.The way that adopting factor analytic approach to evaluate the competitiveness of commercial banks will not only picture the competitiveness vividly and directly 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.