Evaluation On The Competitiveness Of Liaoning City Commereial Banks

City commercial banks, as an important part of China’s banking industry, plays an irreplaceable and indispensable role in promoting the formation and development of banking competition, optimizing the structure of the financial system and improving the efficiency of the financial market allocation money. By the end of 2014, our city commercial banks firms total assets of RMB 16 trillion, which accounted for 10.49% of total assets in all banking financial institutions, and up 19.15% over the same period in 2013. Our country has a total of 133 city commercial banks, and 15 of them come from Liaoning province, which makes the number ranks first in China. All the city commercial banks in Liaoning province have more than 1000 branches, and firm total assets of 1.6 trillion. Despite a "money shortage" situation happened twice, in 2013, city commercial banks’liquidity conditions remain in good level, and the development of the. city business also presents a thriving posture.However, behind the rapid development of Liaoning city commercial banks, many problems hided. There are main of them:firstly, as bank’s profit structure mainly depends on the interest rate spread, the acceleration of marketization of interest rate makes its profit space narrow, fees and commissions zero growth; Secondly, influenced by the current economic, Industrial situation and policy factors, city commercial banks’loan quality showed a downward trend. Above all, risk in industries with excess capacity, the real estate industry and the government loan is bigger; Thirdly, in the face of increasing competition, profit decline, and the limited of the scope of business, city firms concept, market, technology and talented people, city commercial banks mainly adopt to open new agencies, lend more in and out the balance sheet, and build large "base" to make up the gap. Based on this, this paper builds the competitiveness index evaluation system of city commercial banks of Liaoning province to analysis the advantages and disadvantages, found the opportunities and threats. And then, to seek means to improve the core competitiveness of city commercial banks. I believe it will be great significance to the stability and development of the Liaoning provincial city commercial banks.This paper consists of five parts. The first two parts mainly introduced the research background, significance and methods of. the article. And then, i combed the existing literature from the connotation of competitiveness, influence factors, index building, research methods and so on to summarize the deficiency and the merit. Accordingly, this paper puts forward the research ideas. In the third part, through summarizing the literature, this paper design the index system of evaluation at first, which contains real competitiveness, potential competitiveness indicators and financial ecological competitiveness. Meanwhile, in combination with principal component analysis method to build the statistical analysis evaluation system of Liaoning provincial city commercial banks competitiveness.The fourth part is the empirical analysis part of the paper. By using principal component analysis (pca), we carried on a comprehensive evaluation of Liaoning provincial city commercial banks competitiveness level with; the building of bank competitiveness index; system based on the third chapter of the. At the same time, this paper has chosen 6 large domestic city commercial bank as a comparison. Research results show that the index of the scale is the main factor affecting the competitive strength of Liaoning provincial city commercial banks.But for small and medium-sized city commercial banks, advantages and disadvantages of other indicators will significantly affectits comprehensive competitiveness rankings. This will be provided a basis for the small and medium-sized city commercial banks to improve their competitiveness through the characteristic market positioning. The fifth part mainly summarized the research conclusions. On the basis of the results of the study, this paper proposed some advices from the reasonable control of the banks scale, strengtheningr risk management, raise the innovation ability, optimizing equity structure and build the core competitive ability five aspects to enhance the competitiveness of Liaoning provincial city commercial banks.