The Competitiveness Of China's Five Largest Joint Stock Commercial Banks A Comparative Study

With the development of economic globalization and financial integration today, China, which wants to become an economic power and financial power country, needs to quickly improve the competitiveness of its commercial banks. Joint-stock commercial bank in China's economic development and financial reform of the product of an important component of China's banking market as part of the mechanism responsible for the introduction of market competition and explore the reform of commercial banks to the dual task of the road. After more than ten years of development, China's joint-stock commercial banks have grown into the domestic financial sector as an important force.Since joining the WTO, joint-stock commercial banks, face the international business from domestic and foreign competitive pressures in the industry. With the industry from the domestic situation, in order to represent the behavior of agricultural, industrial, building four state-owned commercial banks with its advantage of preferential policies, strong capital strength, outstanding team of professionals, as well as a large customer base, occupied the international operations more than half of market. At present four lines are deepening reform, optimize the body burden of trying to change history, the rigid ways of working poor incentives, excellent brain drain, inefficient services, weaknesses, joint-stock commercial banks will bring greater competitive pressure. From abroad, with the industry point of view, by the end of 2006, China's accession to WTO, five-year transitional period has ended, the business scope of foreign banks, branches and customer restrictions on the object basically eliminated the formal involvement of foreign banks is an indisputable fact, this is bound to change the pattern of competition in the domestic banking market, another example of compression joint-stock commercial banks to survive.In this case, if the overall competitiveness of joint-stock commercial bank in China, cannot be improved, it is likely to affect the stability of commercial banks as well as the overall national economic development of serious problems. Therefore, the current joint-stock commercial banks of China's competitiveness in an objective, comprehensive analysis, evaluation and comparison, and to develop effective strategies to enhance the competitiveness is undoubtedly of great theoretical value and practical significance.In this paper, the theory of commercial banks, competitiveness, exploratory research, respectively, from the profitability, risk control, market size, level of management, innovation, growth capacity, brand and so the choice of seven key indicators of the appropriate, select Minsheng Bank , Industrial Bank, Shanghai Pudong Development Bank, Shenzhen Development Bank, China Merchants Bank, five commercial banks, use of the line of annual reports to disclose the data on China's joint-stock commercial banks, comparative analysis of the real competitive edge. In addition, the factors of resources, capacity factors, and environmental factors have to analyze the constraints of the bank to enhance the competitiveness of the reasons for the formation and to explore the China Merchants Bank to enhance the competitive potential countermeasures.Through the above analysis, this paper finally reached the following conclusions: the overall competitiveness of China Merchants Bank is superior to the other joint-stock banks, especially in the profitability, market size, level of management, innovation capability and brand to grow and so have a comparative advantage. But we should also see the rapid expansion of China Merchants Bank in business with the existence of extensive mode of operation, low levels of per capita contribution to such lack of business. Therefore, China Merchants Bank should focus on working to improve these areas, so as to continuously improve their overall competitiveness.