On Competitiveness Evaluation Of City Commercial Banks In The Western Region

After reforming and opening to the outside world, China’s financial industry has been in a constantly changing pattern. At present, under the changing business environment and regulation policy, China’s financial industry has gradually formed a modern bank system which is Competitive, complementary, coordinate and sustainable development including Foreign Banks, postal savings banks, State-owned Banks, National joint-stock commercial Banks, City Commercial Banks, Rural Commercial Banks and rural credit cooperatives.In order to solve the problem of financing difficulties in local small and medium-sized enterprise, on the basis of the original urban credit cooperatives, City Commercial Banks in our country had developed into local joint-stock commercial banks in the1990s. For nearly20years, City Commercial Banks had experienced three phases, and had played a significant role in the service development of local economy, local small and medium enterprises and urban residents life, and has become a special and irreplaceable part in the financial industry.With the process of marketization of interest rate has been advanced in China, the competition between financial institutions is becoming increasingly fierce. Due to restricted by history, geography and government, the development degree of the city commercial banks are different, some city commercial banks are even facing marginalized situation, especially some City Commercial Banks in the western region, where is relatively backward in economic development. Therefore, on Competitiveness evaluation of City Commercial Banks in the western region has strong practical significance.This paper firstly summarized the relevant theoretical knowledge in competitiveness of Enterprise, commercial banks, and City Commercial Banks, and the research literature of competitiveness of City Commercial banks in and out of our country. And simply describes the development of the City Commercial Banks in the western region. Then, This paper Selected26city commercial Banks in our country as the sample Banks, and the appropriate evaluation index is screened, the corresponding competitiveness evaluation index system is designed. Furthermore, combined with the original data of each index, this article has carried on the comparative on Competitiveness evaluation of the western city commercial Banks in the whole city commercial Banks and between western city commercial banks in the same year from the horizontal angle. Finally, according to the previous analysis, this article made recommendations on how to promote the competitiveness of western City Commercial Banks.In particular, the full text is divided into seven parts, the content of each part is summarized as follows:The first part is introduction. This section describes the research background and the value of this article, and the research methods and framework.The second part is theoretical foundation and literature review. This part firstly summarized the relevant theoretical knowledge in competitiveness of Enterprise, commercial banks, and City Commercial Banks. Then, this paper summarized the research literature of the competitiveness of City Commercial banks in and out of our country.The third part is the factor analysis method and evaluation index system. This part firstly describes the factor analysis method and its basic principle which will use in the following empirical part. And then gives design principles of the evaluation index system in the competitiveness of the western city commercial Banks. Finally, the appropriate evaluation index is screened.The fourth part is empirical analysis on the competitiveness of the city commercial Banks in the western region. Firstly, the choice of sample Banks as well as the data source has carried on the simple introduction in this part. Then, factor analysis is used to get the city commercial Banks in western region from the panel data of2012. has carried on the comparative analysis on Competitiveness evaluation of commercial Banks in the whole67city commercial Banks and between26western city commercial banks in the same year from the horizontal angle.The fifth part is Case analysis:Nan chong commercial bank competitiveness. The sixth part is recommendation on how to promote the competitiveness of the City Commercial Banks in the western region.The seventh part is conclusion. Overall, some aspects such as the capital position of the City Commercial Banks in the western region are good. But there are problems more or less with most of the City Commercial Banks in the western region, such as financial innovation is not enough, corporate governance is not reasonable and risk prevention ability is poor. Therefore, on Competitiveness evaluation of City Commercial Banks in the western region has a certain reference value for its future development and coordination and sustainable development of the whole city Commercial Banks.Possible contributions of this paper are as follows:Through seeking and sorting literature research, we found most theoretical research of the competitiveness of the city Commercial Banks are focusing on the comparative analysis with state-owned Banks or National joint-stock commercial Banks. Even if there are a small number of studies in city Commercial Banks, they also only in view of City Commercial banks which located in eastern region, while analysis on the competitiveness of the city commercial Banks in the western region is still very few, so this paper,can make up for this aspect research in some extent.Due to the limited time and knowledge of the author, this article also has some deficiencies which are needed to be further discussed. Such as the index system of setting remains to be perfect, we should pay attention to the vertical comparative.Therefore, the author hope to make further research on this topic in the future study and work, using other methods (such as the analytic hierarchy process), from different periods, Different aspects of the different perspectives on the same period of the City Commercial Banks in the western region and the whole City Commercial Banks to make a more comprehensive analysis and evaluation.