The Empirical Study On The Core Competitiveness Of City Commercial Banks

With the continuous development of China’s economy and society, especially afterChina’s accession to the WTO, China’s opening up the financial sector gradually and theintensity of competition in the banking sector are becoming increasingly year byyear.City commercial bank is one of the most important members of the banking systemin our country and its operating conditions and the level of development play animportant role for our country’s financial stability and economic development,especially in supporting local economic development, helping small and medium-sizedenterprises growing rapidly. Therefore, with the present situation of the development ofcity commercial banks in China, it is the key to improve their competitiveness level torealize the sustainable development of the city commercial banks in China. This paperis an empirical research on the current core competitiveness of our country’s citycommercial banks.First of all, this paper elaborates the background of the selected topic, thesignificance of research, the purpose of research and the literature at home and abroadin detail. On this basis, the paper discusses the theory of the competitiveness ofcommercial banks and explains the connotation of the commercial bankscompetitiveness theory.Secondly, this paper tries to build a city commercial bank competitivenessevaluation which has strong pertinence and it concludes two levels in this evaluationindex system, namely real competitiveness index (including profitability, liquidity, assetsecurity, and the future development capacity index) and potential competitivenessindex (mainly including the organizational culture index). According to the theorymodel, based on eleven typical urban commercial Banks, four state-owned commercialBanks and five national joint-stock commercial Banks as samples,the paper uses themethod of combining quantitative analysis and qualitative analysis to delve into thespecific indicators. The empirical results show that from the point of sub-index, city commercial banks in China still has a certain competitive in some aspects, but as awhole it still lags behind of the state-owned commercial banks and national joint-stockcommercial banks, in a relatively inferior position. While inside the city commercialbanks, it presents the development imbalance in a large degree.Lastly, in order to enhance the core competitiveness of the city commercialbanks,the paper gives some proposals such as formulating the reasonable strategy,strengthening risk control and product innovation, and striving to expand businessscope.