Research On The Competitiveness Of The Joint-stock Commercial Banks Of China From Financial Perspective

In accordance with the classification standard of the China banking regulatorycommission (CBRC), China’s commercial banking system can be broadly divided intofour major categories: large commercial banks, joint-stock commercial banks, citycommercial banks and other types of commercial banks. As an important part of China’sbanking sector, joint-stock commercial banks have played an important role in ourfinancial system reforms and economic development through its new economicorganization property, flexible business model, and effective decision-making since itsestablishment. Since the financial crisis sweeping the world, international economicsituation remains weak, domestic macroeconomic environment relatively tight, combinedwith the competition from both foreign commercial banks and domestic commercialbanks, joint-stock commercial banks is facing serious challenges. In addition, joint-stockcommercial banks themselves also have some problems in their development. Therefore,adapting to the change of internal and external situation actively, speeding up theupgrading competition power has become an urgent task for joint-stock commercialbanks in China.Financial indicators act as one of the most common business communicationlanguage, can reflect the bank’s reality intuitively, simplifying the several factors whichinfluence the joint-stock commercial banks’ competitiveness from financial perspective ishelpful to establish a scientific mechanism for commercial bank competitivenessevaluation, and find out the key factors affecting the competitiveness of commercialbanks,, and then raise the competitive power of joint-stock commercial banks.This article selected12national joint-stock commercial banks, used thecompetitiveness of joint-stock commercial banks as the main line, structured joint-stockcommercial banks competitiveness index evaluation system from the financialperspective according to the former study, and then analyzed the joint-stock commercialbanks’ competitiveness from financial perspective and put forward the correspondingimprovement countermeasures according to the analysis results. The structure of thispaper is: first put forward the research background and purpose of this paper in the part of introduction, and reviewed the relevant theory studies of commercial bankscompetitiveness from both home and abroad, at the same time pointed out the innovationand the shortage of this paper; The first chapter of this paper introduced the generaldevelopment situation of the joint-stock commercial banks of China, illustrated thedevelopment characteristics of the joint-stock commercial banks through the comparewith other types of commercial banks in China. Structured joint-stock commercial banks’competitiveness index evaluation system from the financial point combined with thecharacteristics and the financial situation of joint-stock commercial banks. The indexevaluation system is divided into five levels: safety, liquidity, profitability andmanagement ability, developing ability and innovation ability, and on the basis of the fivelevel set up17financial indicators, which has formed a relatively complete scientificfinancial evaluation system. The second chapter of this paper adopted the descriptiveanalysis method analyzing the joint-stock commercial banks competitiveness through aseries of single financial evaluation indicators, and this part analyzed the competitivenessof joint-stock commercial banks according to the five aspects which were built in the firstchapter; The third chapter of this paper made an empirical analysis through factoranalysis from financial evaluation perspective, and then given a comprehensive analysison the competitiveness of the12joint-stock commercial banks from the financialperspective. The forth chapter divided the12joint-stock commercial banks into threetypes according to the analysis results of the former two parts: growth bank, brand bank,and stability bank. Then pointed out that growth banks should innovate the service forsmall and micro-enterprises, improve profitability indicators, transform managementpattern, strengthen the bank management ability; Brand banks should actively developcharacter business, implement differential operation to expand its own competitiveadvantage; Stable banks should establish the scientific capital management system,perfect the financial risk control mechanism, at the same time vigorously developintermediary business, promote innovation ability and development space.