Statistical Analysis And Empirical Research For The Competitiveness Of China’s Commercial Banks

As the main body of China’s financial system, it has become an urgent task forcommercial banks to improve their competitiveness. Indicators are selected throughliterature review to construct the comprehensive competitiveness of commercial banksevaluation system. It’s divided into reality bank competitiveness, competitiveness andoverall competitive potential. The2011financial data of banks are selected to evaluate thereality bank competitiveness, competitiveness and overall competitive potential by dataenvelopment analysis and Factor Analysis. And bank consolidated operating level wereevaluated. When building commercial bank competitiveness evaluation index system, thecomprehensive management indicators and stability index are joined in, following theliquidity indicators, basic indicators of profitability, safety indicators, sustainabledevelopment indicators and indicators on human capital of the traditional method. Itmakes a comment more comprehensive and systematically of commercial banks.Firstly, data envelopment analysis shows, the overall efficiency, technical efficiencyand scale efficiency of Prudential Bank, Bohai Bank and Zhejiang Bank are respectively1,ranking first. There are12banks whose overall efficiency is lower than the average overallefficiency, which the overall efficiency of ICBC, Agricultural Bank of China, ConstructionBank and Bank of Communications is the lowest. There are seven banks’ averagetechnical efficiency below average technical efficiency, including Agricultural Bank ofChina, Bank of China and Bank of Communications. Thus, China’s commercial banks canbe further improved in technology management level; In terms of scale efficiency, exceptfor Prudential Bank, Bohai Bank and Zhejiang Bank has reached a scale efficiency of1,the remaining banks are in decreasing state, illustrating the unreasonable scale ofoperation.Secondly，factor analysis showed that Banks ranking on each factor has a significantdifference from bank ranking. As can be seen from the variance contribution of each factor,the first factor reflecting banks’ asset quality has the highest contribution rate. Therefore,the asset quality plays a decisive role to competitiveness of commercial banks. Other factors also affect the competitive position to some extent. Absolute advantage in the assetquality of Agricultural Bank of China, China Construction Bank, Industrial andCommercial Bank of China and Bank of China decides that they ranked the top fivecommercial banks in our competitiveness rankings. This fully demonstrates the decisiverole in asset quality.Finally, combined with the results of data envelopment analysis and factor analysis,proposed policy recommendations and opinions to enhance the competitiveness ofcommercial banks.