A Comparative Study Of The Core Competitiveness Among The Large, Medium, Small Banks In China

There is a rising competition within the commercial banking sector in China due to the exacerbation of financial disintermediation and reformation. The exponential growth and development of internet banking along with the emergence of new financial services has further heightened the competition. As a result, it would be highly essential for commercial banks of all sizes to strategically develop their competitive advantage for long term survival when the market shares of which have been gradually eroded.By adopting the Core Competitiveness Theory and through the comparative analysis of domestic and foreign literature, this study proposes a refined evaluation method to assess the competitiveness of the bank. This paper also analyses and sums up the strengths, weaknesses, opportunities and threats of the large, medium and small banks empirically, using SWOT as the main analytical approach.The study then puts forward an evaluation system, consisting of nine indicators and twenty-seven sub-indicators. This evaluation system is quantitatively and qualitatively applied to studies on five large, five medium and small banks respectively and the results are summarized. To conclude, the study suggests recommendations on how to create a competitive advantage for the large, medium and small banks correspondingly in order to enhance the overall competitiveness of the commercial banks in China, which in turns shall promote a sustainable development of China’s banking industry.