A Study On The Competitiveness Of Joint-stock Commercial Banks In China Based On The Analytic Hierarchy Process

Nowadays, economic globalization and financial integration is becoming increasingly obvious. The pressures and challenges faced by Chinese commercial banks are bigger and bigger. With the deepening of financial system reform and perfect, joint-stock commercial banks have been always trying to explore suitable paths for their own development. They have made significant achievements and contributions to the development of economic and financial for our country. The banking industry of China has been monopolized by state-owned commercial banks for a long time, which seriously hindered the establishment of a fair and effective competition system for the banking sector. There are many drawbacks in the development of the state-owned commercial banks, such as heavy historical burden, government intervention, management inefficiency and so on. These drawbacks are not conducive to the effective and healthy development of the banking sector. In this context, it is very necessary to deeply study the competitiveness of the joint-stock commercial banks in China.The current researches on joint-stock commercial banks in the domestic are mainly carried out from the angle of institutional arrangement, function orientation, etc. Therefore a systematic research on the competitive is a necessary complement to the theory of commercial banks in China. Meanwhile, as banking competition is intensifying, making a scientific and systematic evaluation of competitiveness is good for joint-stock commercial banks to know themselves as well as the enemies. They can realize both the advantages and disadvantages in competitive of their own, then foster strengths and circumvent weaknesses in practice. All these measures will improve the overall interests and promote the progress of the entire financial industry.The competitiveness of the joint-stock commercial banks is the research object of this article. Under the guidance of enterprise competitiveness theory, the thesis defined some relevant concepts of commercial banks competitiveness and introduced several representative theories of competitiveness. The researches on bank competitiveness at home and abroad were completely summarized, which helps us to have a general understanding on the research status of commercial banks competitiveness. Through reviewing the development of joint-stock commercial banks in China, the article expounded the status of the joint-stock commercial bank’s competitiveness from several angles, for instance, asset scale, income situation, the strategic transformation, financial product and service innovation. Combined with a large number of data and comparison with state-owned banks, we can acknowledge the advantages and disadvantages of China’s joint-stock commercial banks competitiveness. Through considering both the competitiveness and potential factors, a complete and clear evaluation index system is built by using the analytic hierarchy process. This system chooses indicators from the angles of quantity and quality, which includes three broad categories, a total of23specific indicators. The weights of evaluation indexes are achieved by using the analytic hierarchy process. The article collected raw data of12domestic joint-stock commercial banks from the year of2009to2011. The standardized data processing can avoid the cross impact of forward and reverse indicators. By setting up the commercial bank competitiveness evaluation model, competitiveness score can be calculated through the weights and standardized data. So we can know the competitiveness rankings of the joint-stock banks. Then the evaluation results are carefully summarized and analyzed. In the end, the article put forward several policy recommendations for improving China’s joint-stock commercial banks competitiveness. These recommendations related to innovation, corporate governance, risk management, market orientation and human resource management, etc.