The Analysis Of The Competition And Cooperation Strategy Between Small And Medium Banks And Large Banks

Small and medium commercial banks make contribution to an increasingproportion of our economy, making up for the deficiency of large state-ownedcommercial banks, playing an irreplaceable role, especially for the development ofSMEs. However, owning to the congenital deficiency, SMCBs in the financialmarkets are always facing with the monopolistic behavior of large commercial banks.Four state-owned banks in particular is a huge threat to them. This paper studies thecompetitive strategy of SMCBs to large commercial banks. There are two patterns instrategy, one is competition, and one is cooperation.In the first part, this paper establishes species Logistic model, analyzes therelationship between SMCBs and large commercial banks, analyzing stable point,founding that the development of commercial banks depend on the competitiveness.Then this paper analyzes the number variation of SMCBs and large commercial banksin competitiveness of different breakthrough point.The second part, based on the data of the eight SMCBs and three major bankscommercial banks annual reports in2012, this paper analyzes22indicators of thecompetitiveness, using principal component analysis to get the competitiveness ofeach bank. Then this paper calculates average competitiveness of SMCBs and largecommercial banks. According to the comparison competitiveness of SMCBs and largecommercial banks, the result of using MATLAB software, we can obtain changes inthe number in different competitive strategy. From the final results, thecompetitiveness of SMCBs was significantly greater than the competitiveness of largecommercial banks. According to the model, SMCBs should adopt a strategy ofcompetition rather than cooperation.Finally, this paper gives SMCBs competitive strategy recommendations: SMCBsshould make the police by the area, by the time by the culture. SMCBs shouldcombine their own advantage,concentrate on the small companies, offer goodquantity of service and open new prospects by product invention and serviceinvention, to forge the competition what the large banks can’t duplicate and improvethe financial system, make up the deficiency of the large banks.