Competitiveness Study Of Chinese Commercial Banks Based On Factor Analysis

The development of empirical economy always depends on credit and virtual economy; it is especially true for finance industry. Nowadays, the finance industry in the world is developing rapidly and it provides the development of empirical economy with a good supporting effect. The finance industry in China is mainly based on banking industry and it plays an important role in Chinese economic development. However, with the rapid deepening reform of finance industry and the acceleration of interest rate marketing reform as well as the rapid development of Internet finance, the competitiveness that commercial banks are faced with is increasing rapidly. Therefore, it has quite a big theoretical value and practical significance to precede the considerable, comprehensive and profound analysis and assessment on the competitiveness of Chinese commercial banks and then to come up with pertinent strategies that can enhance competitiveness.The thesis has six chapters, first of all, based on the connotation of competition and competitiveness, it defines the basic definitions and features of enterprise competitiveness, and then it discusses about the current developing status of bank competitiveness and makes a comparison on Chinese banks; secondly, it establishes the index system that can evaluate bank competitiveness based on the basic principles to construct index system, and it adopts factor analysis and cluster analysis methods to make empirical analysis on Chinese commercial banks’ comprehensive competitiveness; finally, according to the empirical results and current status, the thesis comes up with the suggestions that can promote the bank competitiveness:to enhance innovative capacity, to improve asset quality and optimize risk control system to enhance risk reduction ability.In the empirical analysis part, the study sample data that the thesis adopts is from the4national commercial banks and the9joint-equity commercial banks, the thesis adopts factor analysis method to weigh the weight of each index, then it ranks the competitiveness capacity of Chinese commercial banks based on the results of comprehensive factor remarks, and it makes a deep analysis on the competitiveness status of Chinese commercial banks. According to the results of the empirical analysis, we find that these Chinese joint-equity commercial banks (especially those listed joint-equity commercial banks) have better competitive advantages than those national commercial banks. Thereafter, based on the above analysis, the thesis identifies the main elements that can influence banking competitiveness which are the business innovation capacity of commercial banks, the scale power of commercial banks, the developing capacity of commercial banks and the risk prevention capacity of commercial banks and so on. Finally, applying cluster analysis, the thesis classifies the13samples of banks selected into6categories. According to the result, the4joint-equity commercial banks named CMB, SPDB, CMBC and HXB belong to the first category, the4national banks named CCB, BOC, ICBC and ABC belong to the second category, CEB and Ping’an Bank belong to a category, CIB belongs to a category by itself, BOC and CITIC Bank belong to the same category.Adopting the results from empirical analysis and combining the current developing status of Chinese banking industry, the thesis comes up with specific measures and suggestions to enhance the competitiveness of commercial banks based on the successful experiences; it has certain instructive significance to improve Chinese bank competitiveness and makes it accustomed to the daily increasing competitiveness.