Research On The Competitiveness Of Listed Commercial Bank In China Based On Structural Equation Model

Commercial banks are the main body of China's financial system. Listed commercial banks, as the most dynamic component of the banking sector, its operating efficiencies related to the bank and the whole financial system to improve resource utilization. Explore the objective evaluation and the impact mechanism of the competitiveness of listed banks , are of great significance to the bank itself and to China's financial system.Firstly, based on the theory of the competitiveness of commercial bank, combined with the characteristics of listed banks,the paper built a evaluation index system maked up of the five main factors to reflect the competitiveness , five main factors: profitability, safety, liquidity, growth sexual and property rights , and set the corresponding observations for each main factors. Under the guidance the evaluation system, making use of the structural equation modeling approach,with the first exploratory factor analysis verified the explanatory power of observations, built the first order factor analysis model to explore the correlation between the five main factors, and on this basis established econd-order factor analysis model to epitomize the competitiveness of listed commercial banks. The paper selected 14 listed commercial banks listed before 2008 in china as the sample, took 4 years datas in the annual report from 2007 to 2010.Through with the model fit, modification and testing, and ultimately determined a structural equation model including 5 latent variables and 15 significant variables, with good significant . Play the advantages of structural equation model in optimization and simplified structure, maked the evaluation of the competitiveness more concise and objective.Finally, by the measuring equations from the second-order factor model , the paper evaluated the competitive level of the listed commercial bank in China in 2010 .Then analysised the situation respectively, from the overall level of competition and from the five major aspects. Found the problems exised in china listed banks , and made some suggestions for how to improve the competitiveness of listed commercial banks .