| City commercial bank is an important part of China’s banking system. The growth of city commercial bank plays a positive role in the development of local economic and enterprises. However, the city commercial bank’s special historical origin, such as high proportion of non-performing loans, low quality of assets and insufficient rate of capital adequacy, is seriously restricting the good and rapid development of itself. Current researches on city commercial bank are more concentrated in bank efficiency, profit level and competitiveness. The research on its own development vulnerability is less. How to guarantee the steady development of city commercial bank in the face of increasingly fierce competition in market environment is a common concern problem.Based on this, through the theory analysis of vulnerability, financial fragility, the banking fragility theory, this paper aimed to clarify the concept of bank fragility and the relevant evaluation indexes, and propose city commercial bank vulnerability’s concept combined with city commercial bank financial endogenous theory. The paper constructed a vulnerability index system of city commercial bank, collected the data of 18 city commercial banks and calculated the index weight by Entropy-AHP, which is the integrated subjective and objective weight method. Then, the paper used the method of set pair analysis to determine the vulnerability, coping capacity and sensitivity of the 18 banks in 2009-2013. The results show that, during that period Chongqing Bank ranks the lowest in vulnerability, it has been 3 times at a low level of vulnerability, and Qilu Bank ranks the highest, it has been 3 times in high degree of vulnerability. The paper points out that the key inducing factors of city commercial bank’s high vulnerability are provision coverage ratio, capital adequacy ratio and non-performing loan ratio by set pair analysis. Finally, the paper puts forward some policy suggestions according to the results. |
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