Research On Competitiveness Of Domestic Commercial Banks

After the global financial tsunami triggered by the U.S. subprime mortgage crisis, Chinese banking industry emerges in the world. Industrial and Commercial Bank of China, China Construction Bank, Bank of China become the top three ranking among the global bank in the stock market value at one time. Specially ICBC has become the world's most profitable bank.In these auras, whether the commercial banks of China has exceeded the world's well-known big bank in competitiveness remains to be test by time. With China's financial industry opens completely, many foreign banks swarming into China. With their advantages on brand, management and technology, foreign banks occupy a certain market share of middle business, international settlement and foreign exchange quickly. In addition, Chinese capital market is in a rapid development. Non-bank financial institutions such as the securities companies, trust companies continuously preempted the customers resources of commercial banks, result in the share of indirect financing decline increasingly. In such serious situation, how do the commercial banks of China stabilize the situation in the fierce competition, consolidate and expand their market share, realize sustainable and stable development, is a very complicated subject. Under this background, this paper studies on this set of problems.This paper researches from the general competitiveness theory, and references enterprise competitiveness and commercial bank competitiveness theory research achievements of predecessors. By principle of comprehensiveness, systematicness, scientificity, operability and comparability, this paper selects five kinds of index which can best embody the competitiveness of commercial bank and subdivides they into 15 statures index. This paper selects the factor analysis as empirical method to study the competiveness of 16 listed commercial banks. According to their 2009 annual reports I finishing get the raw data of 15 sub-functions index and standardize they by formula changes to achieve the comparability between different data. With the help of SPSS software I got four factors. According to the weight of each index of the four different factors I explain and name them. I got these 16 banks each factor score and comprehensive score, then analyzes them and research the difference of various aspects of competitive of these 16 banks. Finally, according to the difference of various commercial banks in resources possession, operation characteristics and market positioning, this paper put forward different strategies for different kinds of commercial banks to improve their competitiveness.