Commercial Banks Competitiveness Evaluation Index System And Methods Of Research

According to the promises of China when she entered the WTO, the banking of China would be entirely opening-up. And the banks whatever they are domestic or international would be treated with national treatment. The domestic banking is faced with severe challenges. So the measures should be taken to improve the competitiveness of the domestic banking. At the same time, the existing approaches and system of the competitive appraisal are artificial or not all-around. So how to appraise the banks' competitiveness scientifically is a big problem which demands prompt solution.The research of this paper is launched at this point. The content of chapter I includes putting forward the question, the analysis of current situation of the study both at home and abroad and proposing the thinking of research and frame of this paper. The definition and the key forming elements of competitiveness of commercial banks are given in chapter II. And in chapter III and IV, the appraisal system and approach are fixed. Then they are used to appraise the sample banks' competitiveness in chapter V. At last, the conclusion is drawn in chapter VI.The Focal points of this study lie in how to establish a hierarchical evaluation indexes system which includes resource, ability and environment, these three elements, and also how to fix an approach which can reflect the experts' experience and at meanwhile can reduce the subjectivity and randomness in the appraisal.The main characteristic and innovation of this paper lie in three following aspects. Firstly, the entropy weight that is objective and the AHP that is realistic and rational are synthetically used in the appraisal. So it solves the problems of the existing research which only uses AHP causing randomness and subjectivity, or which only uses Principal Components Analysis causing hardly reflecting experts' experience or realistic situation. Secondly, the bank value index is brought forward in the evaluation indexes system which reflects the market risk and the cost of the capital. So that it can make up the defect in the existing system that only uses financial index not considering foresight and the cost. Thirdly, a multilevel index system is established in this paper consisting of three major key elements of resource, ability and environment, which solves the problem in existing competitiveness evaluation study which only concerns the current, security and profitability in banks' finance neglecting the comprehensiveness or dividing the hierarch of evaluation index system.