Research On The Reputation Capital Management Of Commercial Banks In China

With the acceleration of financial globalization, competition between commercial banks is increasingly intense, thus reputation capital of commercial banks, as a soft-core competitiveness, has gradually drawn the attention of commercial banks worldwide. The reputation capital plays an active role in promoting the healthy development of commercial banks and in reducing financial losses. However, commercial banks of China generally have low reputation capital at present, which has become a bottleneck in the development of Chinese commercial banks. Therefore, the research on the reputation capital of commercial banks of china has important theoretical value and practical meaning.This paper first summarizes relevant theories regarding the reputation capital of China’s commercial banks. Secondly, from the economic view, this article explains some important issues:the connotation, function and influences of reputation capital in commercial banks of China. Thirdly, the study discusses the evolution of the reputation capital management in China’s commercial banks in perspectives of developing process, status quo and existing problems. It focuses on the problems of the reputation capital management in China’s commercial banks, and believes that the main defects in the reputation capital management of China’s commercial banks are:management lag of reputation capital, non-response to customer complaints, lack of specialized institution of reputation capital management, decentralization of the strategic implementation departments, mismatching between internal control and innovative new business, increased difficulty to carry out reputation capital management due to financial innovation, as well as the lack of prospective, systematic and persistent reputation capital management. On the basis of previous study, the article chose a sample data from131valid questionnaires and analyzed the management effect of reputation capital of China’s commercial banks in a series of quantitative analysis. These analysis (including Moody Sequence Diagram Method, Confirmatory Factor Analysis, Reliability Analysis, Validity Analysis and Factor Analysis Method) conclude that:Firstly, the establishment of the indicator system of the reputation capital management of China’s commercial banks should base on the interests of stakeholders; Secondly, the effect of reputation capital management in China’s commercial banks is influenced by social development and growth trend; Thirdly, compared with small and medium-sized commercial banks, state-owned commercial banks have an advantage of reputation capital management; Fourthly, the level of reputation capital management in China’s commercial banks tends to be unstable.In light of the above theoretical and empirical analysis, this article presents several recommendations to improve the development of reputation capital of commercial banks of China. On the one hand, from the perspective of internal factors, it is necessary to establish a sound complaints feedback mechanism, to improve staff professionality and service quality and to increase the number of experienced management personnel. Also, it is important to build an effective customer information management system, strengthen the early warning mechanism of the reputation capital and upgrade the supervision and regulatory of the reputation capital inside the banks for them to contribution to social development and keep a strong trend. On the other hand, from the perspective of external factors, China’s legislature should improve laws and regulations system of financial supervision; China Banking Regulatory Commission need to improve the regulatory system of China’s Commercial banks; China Banking Association ought to enhance communication with the media; the government must build up a good economic and political environment; also the financial market of our country need to keep a rapid and balanced development.