City Commercial Bank Competitive Power Evaluation

In 1995, the first city commercial bank in China, Shenzhen City Commercial Bank, was established. After more than ten years'development, the city commercial bank made an excellent achievement. By the end of 2009, city commercial banks' quantity in China achieves 148, including 12 new establishing in 2009. Up to the end of fourth quarter,2009, the total assets of city commercial bank in China amounted to 5,680,010 million, increased by 37.5% compared with the same period,2008, accounting for 7.2% of banking institutions in China. City commercial bank has become a very important part of banking service system in China, and will take more and more important position in the economic development and social life of China. However, we also should realize soberly, in China, Banking faces fierce competition; most city commercial banks have to face the realty such as low Asset Quality, lack of Capital and high Non-performing Loan Ratio etc. The competitiveness of the city commercial bank is widespread concerned by domestic scholars, there will be very important practical significance and research value to study and analysis their competitiveness.There are 14 city commercial banks in Shandong totally. Generally speaking, they have a good prospect with high Asset Quality and low Non-performing Loan Ratio, and the total Deposits both of Qilu Bank and Qingdao Bank have already over 60,000 million, and most of them have opened branches outside city. But because of their predecessor, Urban Cooperative Bank, and the developing status currently they are in, there are some problems in their Corporate Governance Structure, Risk Management and Financial Innovation. It will be certain reference value to research the competitiveness of city commercial bank in Shandong.This thesis tries to research the competitiveness of city commercial bank both internal and external, and establish the competitiveness evaluation system for city commercial bank in Shandong. The thesis evaluates and analyses the competitiveness of city commercial bank in 3 layers including Dominant Competition, Potential Competition and External Financial Environment, and set evaluation index to each layer- Dominant Competition into Market Scale, Profitability, Liquidity and Safety total four primary indexes, Potential Competition into Innovation Ability, Development Ability and Management total three primary indexes, and External Financial Environment into Local Economy, Local Finance and Social Fixed Assets Investment total three primary indexes, and there will be second index below each one primary index to make more comprehensive and concrete evaluation and measure.This thesis analyses the history and present situation of 14 city commercial banks in Shandong, take Analytic Hierarchy Process (AHP) and Weighted Average Method to research and evaluate 13 city commercial banks from Dominant Competition, Potential Competition and External Financial Environment with all report data for 2009. According to the evaluation result, combined with the reality of economic and financial developments in Shandong Province, the thesis proposes the targeted and operational strategic choice to raise the competitiveness of city commercial bank. Ultimately, the thesis make a summary and prospect from four scenarios-Evaluation System Settings, Measurement Method, Urban Development Pattern and Successful Businesses Cases, and identifies the next research direction.