Research On Competitiveness Of Joint-stock Commercial Banks Based On Grey Evaluation Method

The competitiveness of commercial banks has become a hot topic among government, commercial banks and social concern recently. Commercial banks relate to the banking and financial system, individual businesses and residents closely. In the current China’s banking system, the joint-stock commercial banks account for half of the number of listed banks, two fifths of the total net profits and interact with a large number of the small and micro businesses. Due to the reasonable ownership structure, flexible system and mechanism, wide business layout, strong business innovation, Joint-stock commercial banks are of great competitiveness in all kinds of banks and in the entire financial system. Meanwhile, it also faces the domestic and international economic and financial environment changes and the internet finance, interest rate marketization trend challenges. Under these background, researches on China’s joint-stock commercial banks becomes more practical.This paper treats China’s joint-stock commercial banks as the research object and it selects six aspects of the index of the eight joint-stock commercial banks from 2008 to 2012 as the primary index system, which includes the capital adequacy, asset quality, management, earnings, liquidity and sensitivity to market risk. And then we use the cluster analysis to select the index system of the project needed. Further on, by way of the grey comprehensive evaluation method and MCE software, this paper obtains the eight joint-stock commercial banks competitiveness relevance ranking according to the empirical data processing of the index system of the eight joint-stock banks from 2008 to 2012.Through the empirical analysis, it turns out that China Merchants Bank, Industrial Bank, and Shanghai Pudong Development Bank are the banks whose competitiveness has stand out in front, CITIC Bank, Ping An Bank and Huaxia Bank has been ranked bottom while China Ever-bright Bank and Minsheng Bank are in the middle in the past 5 years. Further, this topic gains the advantages and disadvantages of the eight joint-stock commercial banks from the internal factor structure competitiveness analysis of the eight commercial banks. Finally, this paper puts forward the Countermeasures of eight commercial banks to improve their competitiveness in the future according to the competitiveness of joint-stock commercial banks of the six factors,such as increase net capital, improve capital adequacy ratio, optimize the credit structure, control the rate of non-performing loans,strengthen cost control, establish a scientific and reasonable governance structure and system, optimize the business structure, improve their profitability,strengthen internal and external control, combine liquidity supervision, strengthen risk control ability by using a variety of methods and tools etc.