A Study On The Competitiveness In The Development Of China's City Commercial Banks

At present, the business of China's financial industry has been fully liberalized. Domestic and foreign banks compete with each other and small and large banks fight for the market. All of these provide the small and medium sized commercial banks with a heterogeneous living space. The city commercial bank is one type of small and medium-sized commercial banks. As a special financial community in China's financial system, it has played a great role in servicing the local economy and supporting local small and medium-sized enterprises in the development of over ten years. However, due to factors like the heavy historical burden and the business constrained by geographical conditions, the overall operating conditions of city commercial banks have been difficult since always. As a result, how to seek greater developments in the fierce competition for city commercial banks is an important subject to be studied at the moment.This paper attempts to analyze the real and potential competitiveness of 19 sample city commercial banks in the Bohai Rim region, Yangtze River Delta, Pearl River Delta, Midwest and Northeast regions of China. As for the selection of sample banks, regional and scale factors have been taken into account. And the construction of the index evaluation system tries to achieve comprehension and operability as far as possible. Based on the existing competitiveness theory of commercial banks, combining with the development status and research purpose of city commercial banks, the study focuses on constructing an index evaluation system of the real competitiveness and potential competitiveness. The former includes five main indices of the operating scale, operating performance, asset quality, prudent management and development capacity, and the latter includes the ability of business development, management structure of bank corporations, staff quality and the ability of technological innovations.With the use of relevant knowledge of finance and economics, combining with the method of factor analysis statistics, the central subject of enhancing the competitiveness of city commercial banks has been explored by the research methods which combine not only the specification and empirical research but also the qualitative and quantitative analysis. The paper uses statistical software SPSS11.0 to empirically study the real and potential competitiveness of sample city commercial banks, and then adopts the weighted average method to evaluate the overall competitiveness of city commercial banks. At last on the basis of empirical results, three specific measures have been put forward to enhance the competitiveness of city commercial banks. The paper will also make a detailed elaboration of the measures from specific points:First is to enhance the competitiveness based on the operating characteristics; second is to enhance the competitiveness based on the technology innovation; third is to enhance the competitiveness based on the organizational capacity optimization.The result of this study has a certain reference value on forming an accurate understanding of the competitiveness status of city commercial banks. But because of the difficulty of data collection, the result will inevitably involve many areas that statistical data cannot cover. With the continuous development of the banking industry, we should be continually concerned with changes of city commercial banks in all aspects, then ultimately fully understood the development of competitiveness, and further improve the entire competitiveness theory of commercial banks.