A Study On The Competitiveness Of China's Commercial Banks

China's financial system is dominated by the banking. Bank credit is the main channel of corporate finance. Therefore, the stable development of banking is critical to China economy. With the world economic integration and financial globalization, the competition among global banking become more and more intense. Especially after Chinese accession to WTO, foreign banks bring continued and more direct pressure on China banking.Currently, the global banking competition highlights the "China miracle". It should be said that Chinese banking has become the representative of the Asian banking. It's an important new force to global banking. China banking had an amazing transformation in the past decade. It reached a new record high and faced a new development opportunity. But we should clearly recognize that the Finance is a classic cyclical industry. Years of rapid development has brought not only achievement, but also a large number of potential risk factors. Meanwhile, the impact of subprime crisis is gradually weakening, global major economies gradually recover and stabilize. Some countries show a growth trend. Recovery in the global economy leads the Western banks out of the woods, and foreign banks in China will necessarily return to the stage of rapid development. In summary, we need to face the status of the competitiveness of China banking. We need to study the potential risk factors which are affecting the current competitiveness of China banking, and explore measures to solve these problems. These provide a reference for China banking to maintain a strong competitiveness.Firstly, this paper describes the competitiveness of commercial banks based on the competitiveness of enterprises, and then focuses on the realistic competitiveness of commercial banks. In order to assess the realistic competitiveness of commercial banks, a practical evaluation system is needed. Comparing to the evaluation system, we can correctly evaluate the current environment, and improve the shortcomings, aiming at prompting commercial banks'effectiveness. This will be illustrated in chapter 3.In the empirical research aspect, I select 14 listed commercial banks as our sample, from more than 200 commercial banks in our country, and get indicator data from 2009 annual reports of listed commercial banks. Based on the sample and the indicator data, we analyze the competitiveness of commercial banks by factor analysis, using SPSS. According to the results, there are four main factors that distinctively affects commercial banks'competitiveness, such as developing will factor, sustainable profitability factor, asset quality factor and the scale expansion factor. I explain the results from both statistical and empirical aspects.According to specific policies and environment, this paper studies the potential risk factors of the four main factors that affect Chinese commercial banks' competitiveness on the basis of the evidence. Developing will factor and asset quality factor may encounter potential risk factors that originate from recent booming of China banking. From the perspective of sustainable profitability factor, Chinese banks'profit structure are not optical, and contradict to global banking development trend, due to interest rate controls and the lack of innovation in business. As for the scale expansion factor, commercial banks should strengthen the management of large enterprises.In the last chapter, based on the conclusions from empirical research and the main factors analysis, the paper proposes a series of comprehensive suggestions, and attempts to offer a reference framework for the improvement of commercial banks'competitiveness.