| Commercial banks is an important part of a country’s economy, because the competitiveness of the commercial banks reflect the level of development of the financial sector of the country to some extent, it is also an important aspect in the measuring the economic of a country. It’s been30years since the1980s China began to reform the bank system. And the development of the commercial banks in China has made remarkable achievements in these30years. In the British "Banker" magazine2011and2012report, China’s banking industry profits have increased doubled during the year2007to2010, accounting for21%of the share of the profits of global banking, even up to30%in2011. In the assets aspect, the growth rate of total assets of the banking industry in China rankingfirst in the world. In2011Chinese banks ranked tenth because its high rate of return on capital of5.8%, which is much higher than the Istern European banks and the Japanese Banks. Chinese commercial banks accounted for three seats in the top ten banks, which are the Industrial and Commercial Bank of China (ranked6), China Construction Bank (ranked8), Bank of China (ranked9). And in the ranking climbthe fastest of the top25banks, Chinese banks accounted for15seat, apart from the Agricultural Bank, the other14banks are small or medium-sized banks. These rankings show that Chinese commercial banks have some competition. It also reflect advancement of Chinese banking industry after WTO accession. Chinese banks gradually narrow the gap and show the potential of development.But it is necessary to remember that I must clearly recognize their own after I’ve achieved such extraordinary progress. The late start of China’s commercial banks, the low starting point, although in the30years of reform and development process, China has basically established a perfect commercial banking system, the variousthe commercial banks have made tremendous development and progress, but there are still some problems. This is a good opportunity for Chinese banks to develop since the Asia-Pacific region as the new growth point of banking industry. Huge market temptation, commercial banks should know how to deal with to maintain existing market share in the competition and learn from advantaged commercial banks to develop their own. Knowing the true level of their competitiveness, summing up their own strengths and Iaknesses, Chinses commercial banks can move quickly and efficiently. In addition, from a macro point of view, to study the competitiveness of commercial banks can bring great significance for managers to develop an appropriate economic policies which promote the financial sector and the development of the domestic economy.There are two aspects in the study of the competitiveness of commercial banks. One is from the macro points of view which examine the efficiency of a country’s banking competition, market concentration and the efficiency of supervision to understand the competition in the banking sectorthe overall level of competitiveness. The other one is from the micro points of view which measure the competitiveness of each bank according to financial and non-financial, data on relevant indicators.This paper measures the competitiveness of commercial banks from the micro point of view. From the microscopic point of view, the elements that affect the competitiveness of commercial banks, including the capital, products, services, technical level, personnel, organizational structure, business processes, etc. I firstly put the competitiveness of commercial banks as a whole system and then subdivided into three levels which is the reality competitiveness, the potential competitiveness and the environmental competitiveness. In the reality competitiveness of commercial banks depends on the "three standards" of commercial banks. The potential competitiveness contains the corporate governance structure, business innovation capability, asset quality. The environmental competitiveness considers China’s macroeconomic and macro policy. Then I combine the financial indicators and non-financial indicators with multi-stage evaluation, building competitiveness evaluation index system of commercial banks. Thus I specific19indicators as following, return on assets, liquidity ratio, capital adequacy ratio, the proportion of tradable shares, return on net assets, internal institutional settings, the internal control system set, the proportion of non-interest income, per capita profits, employee education levels, assets, loan-to-deposit ratio, non-performing loan ratio, GDP total, GDP annual growth rate, per capita GDP, inflation rate, the market access system, the legal environment. And then I use panel data model to build an empirical analysis on China’s commercial banks. I will compare the competitive position of the commercial banks in China, based on the evaluation and analysis of the panel data. Taking into account the difficulty of data collection and the credibility of the data, this paper selected the listed commercial banks to be measured.Meanwhile considering the Bank of Beijing, the Bank of Nanjing and the Bank of Ningbo announced less data and its business scope have not completely breaked geographical restrictions,so this paper did not include these three commercial banks in the empirical analysis.This article comes to the conclusions as following.(1)The state-owned commercial banks in the indicators are slightly inferior to the joint-stock banks, but did not differ much.(2)There are5indicatos indicates the competitiveness of commercial banks, in order by the per capita profit, non-interest income, non-performing loan ratio, the proportion of the outstanding shares, return on net assets.(3)Real competitive reality competitiveness of the joint-stock banks are superior to the state-owned commercial banks.(4)The flexible operational mechanism, staff advantage, the lighter historical burden make joint-stock commercial banks are better performing than the state-owned commercial banks. Although the more branches, more high credibility of state-owned commercial banks occupied most of the credit resources, the state-owned commercial banks are not as good as the joint-stock banks in the efficiency of operation.(5)It should be noted that the value of the each indicator tended to converge, the gap is gradually narrowing since2009. Competitive values and the values of the indicators are in a steady improvement in the optimization phase by now.Finally, after I combine the empirical part of the analysis and current development trend of commercial banks, I will made recommendations to the Chinese commercial banks.On risk management and control ability, Chinese commercial banks must continue to improve its credit process and make it match the settings of organizational structure. Carry out the real-time monitoring during the business processes, reducing administrative intervention and pay attention to the risk of mass information. Establish the risk database and the appropriate risk assessment model to build the risk management system. Avoid excessive resource inclined to large enterprises. In the process of lending to SMEs commercial banks should pay attention to identify the soft information. For non-performing assets, commercial banks should take the initiative disposal and establish the non-performing assets collection system to improve the recovery of non-performing assets.Continue to explore the flat organizational structure in the organizational structure. Decentralize branches as well as pay attention to prevent the risk if the branches are too aggressive, meanwhile clear the attribution of responsibilities between the various functional departments. Put the credit resources partial to the key industries and SMEs. Speed up the development of new and customer-oriented products. Evaluated the former products and optimize the integration, thus can attract quality customers. Establish a scientific system of remuneration and personnel training which evaluate the staff scientificly.On ownership structure, increase the proportion of outstanding shares and give full play to the role of the Board of Directors. Accelerate the separation between government and enterprises at the same time. Balance the overall relationships of the shareholders, customers, employees, society. Give managers greater authority and the right incentives. Promoting and improving the modern enterprise system continuely to maintain the good development of commercial bank management.On research methods, this article summarize the factors that affect the competitiveness of commercial banks, selecting specific financial and non-financial indicators, and reflect the various factors that affect the level of competitiveness of commercial banks. Then I use the panel data model evaluation based on the specific indicators to estimate the competitiveness of commercial banks, excluding not significant indicators and get the specific values of the indicatos. Then I analyse the factors which affect the level of competitiveness of commercial banks. At last I make recommendations to help to improve the competitiveness of China’s commercial banks.Innovation of this paper:(1)This paper made the combination of the theoretical and practical work, dicussed the competitiveness of Chinese commercial banks systematicly. The sdudy of the competitiveness of commercial banks is relatively mature, but the empirical part mostly only take financial data. This paper based on the index system constructed by the previous scholars, adding the inclusion of non-financial factors, selecting out of the main indicators which affect the competitiveness of the commercial banks significantly.(2)This paper using panel data model, adding a time factor, unlike previous studies only considered a de facto changes at a glance, there are more comprehensive data than just the use of the cross-section, putting forward recommendations to strengthen the competitiveness surer.(3)This paper is not in accordance with previous studies only using ROA or ROE alternatively to value the competitive size. Instead of it, I based on the "three standards"to plus return on assets, liquidity ratio and capital adequacy ratio together to indicate the reality competitiveness value.There is more to be studied later in depth:because this article select the time span from1995to2011, as total of17years. Inevitably there are some missing data, or data inconsistencies due to different statistical standards. In the encounter data inconsistencies situation, I choose the data on the China Financial Yearbook as standard. This need for further analysis to explain the economic significance of the model. |
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