Competitiveness Evaluation And Research Of China’s Listed Commercial Banks

The global economy experience a hard period and China’s financial reform continue to deepen. China’s commercial banks encounter huge pressures and challenges. By 2010, the five largest state-owned commercial banks have completed the listing process. The strength of domestic listed commercial banks become unprecedentedly powerful and they become the absolute leader of domestic commercial banks. As the entry of foreign banks, the further promotion of interest rates marketization and the policy of allowing private capital to set up banks, how to respond to a series of challenges in the new environment, seize opportunities in the development progress and improve the competitiveness of China’s listed commercial banks become an important subject that we need to study today.The studies on the competitiveness of commercial banks already have a foundation and tend to improve gradually in both domestic and oversea countries, but the independent study to explore the competitiveness of listed banks is still relatively lacking. Whether from the view of the world or our country, listed commercial banks are the leaders of commercial banks and represent the higher level of a country or region’s commercial banks. This article based on the theory of commercial bank and theory of competitiveness, propose the concept of listed commercial bank competitiveness. Based on the general characteristics of listed commercial banks, we build the indicator system to measure the listed bank competitiveness. Then evaluate the competitiveness level of China’s 17 listed banks using factor analysis and classify domestic listed banks using cluster analysis.The conclusions are as follows:the domestic listed banks can be classified as state-owned banks, joint-stock banks and regional banks. The overall competitiveness of five major state-owned commercial banks is relatively backwardness, they are strong in capital adequacy, but the equity value and development capacity is weaker than other banks, the relative size of the market is also not ideal. The overall competitiveness of joint-stock commercial banks is medium, they are in better situation of equity value, development capacity and the relative size of the market, but the capital adequacy is not as good as other banks. The regional commercial banks perform well in overall competitiveness, the ability of capital adequacy and liquidity situation is especially good, the equity value and development capacity is in the middle and upper level, the profitability and relative size of the market getting better year by year. According to the results of evaluation, the article gives advice on how to improve listed commercial banks’competitiveness from the view of three categories of commercial banks.