Research On Competitiveness Of China's Listed Commercial Banks

All countries in the world, particularly developed nations in the west, have started a wave of global bank M&A to enhance the competitive power of their financial institutions in the international financial market since the 1990s, which not only results in great changes of rank in the world's largest banks, but also makes gradual integration of financial markets, The financial industry has broken down the bounds of different trades and becomes a multifunctional financial super-carrier including insurance, banking, security, fund and so on. On the one hand, all commercial banks tend to strengthen the ability of finance on resisting risk, complement one another, reduce the management cost and reduce the excess production pressure of the industry to improve operating efficiencies in the present financial crisis. On the other hand, the western developed countries implement the merger and recombination in the banking sector to optimize the allocation of financial resources in the globe and play a dominant role in world economy development, This is the two main reasons. Closer interdependence and fiercer competition will unfold in the global banking development.As the core of the modern economy, finance plays an important role in world economy and national economy, In the current world, a strong national economy is supported by a powerful financial competitive advantages. With the integrative trend of world economy, competition in overall national strength, focused on economy, is becoming increasingly fierce. Facing the new situation full of opportunities and challenges, all countries need figure out the strategies to win the challenges and acquire the competitive advantages. As the five years of transition-period of China finished in December 11.2006, the banking industry of China opened up entirely to WTO members. Foreign banks began enjoying equal national treatment and initiate a total competition with banks of China. Their clear competition is the great challenge for banks of China. At the same time competitions among Chinese banks are growing fiercer. The stock commercial banks enter the stocking market one after another and are in intensive competition with the state-owned commercial banks. As the up-and-coming youngsters, the city commercial banks also join in the competition. Development of stock commercial banks and city commercial banks makes competition in banking industry increasingly fiercer and fiercer.Because Chinese commercial banks are facing unprecedented complex environment and heating-up competition, We should design competitiveness evaluation index system to analyze and evaluate the present competitive situation and to determine the respective competitive capacity. In this way we can not only understand scientifically current situation of Chinese commercial banks, but also we are able to find out deficiency and help our commercial banks formulate reasonable competition strategy to grasp the opportunity and gain advantageous position in the international financial competition.Under the guidance of competitiveness theory of commercial banks, this paper constructs the evaluation indicator system for. competitiveness of commercial banks, analyses competitive conditions of 14 listed commercial banks of China and then puts forward the strategy to improve the competence of commercial banks. It consists of five parts.1, The preface, which explains the research background and purpose, reviews the relevant achievement of foreign and domestic research and then conducts a brief evaluation.2, Research on competitiveness theory. This part offers definition and architecture of competitiveness and enterprise competitiveness as research core, gives a brief introduction to enterprise competitiveness and then conducts a brief theoretical analysis of generality and particularity of competitiveness of commercial banks.3, Existing evaluation method of competitiveness in commercial banks. This part introduces the existing evaluation indexes and its drawbacks on competitiveness in listed commercial banks, demonstrates the applicability of factor analysis and then gives a brief introduction to this method.4, Empirical analysis of competitiveness in commercial banks. This part introduces selected evaluation objects, data sources and selection principle of competitiveness indexes, constructs the analysis model on competitiveness in listed commercial banks by factor analysis by SPSS and ranks the competitiveness of 14 listed commercial banks of China in empirical analysis.5, Suggestions.This part puts forward the suggestions to improve competitiveness of commercial banks in China on the basis of empirical analysis to increase the competence of our banking under the background of opening to the outside world.The innovation of this text lies in:1, Empirical analysis of competitiveness of listed commercial banks of China by factor analysis by SPSS, which overcomes the drawbacks that competitiveness is evaluated by comparison of financial data in traditional research method and works well in the combination of normative research and empirical study.2, Comprehensive and persuasive analysis involving those of profitability, fluidity, security, growth, service structure and corporate governance on the basis of data of listed commercial banks'2006-2008 annual reports. Its insufficient place lies in limited analysis scope due to availability of data and inadequate coverage of indexes.