Research On Chinese Commercial Bank’s Competitiveness Based On Rough Sets And Fuzzy Comprehensive Evaluation

The strength of the competitiveness of commercial banks has a great influence on our country’s macroeconomic development. With the openness of the financial sector growing in our country, the competition between banks is becoming more and more fierce. How to improve their own competitiveness in the economic integration and the change of the financial markets is becoming an important problem faced by commercial banks.Now, the foreign scholars research earlier in the study of the competitiveness of commercial banks, whereas the domestic is relatively late. From the research status at home and abroad, the evaluation index system which scholars selected is not the same,the research methods are varied, such as the Analytic Hierarchy Process(AHP),Neural Network method, Factor Analysis, Data Envelope Analysis(DEA), Game Theory, the Grey System Evaluation method, the Cobweb Model method, etc. But the literature combining rough sets and fuzzy sets to study the competitiveness of commercial banks is rare. Rough sets theory has strong objectivity when processing data, and it can eliminate redundant indicators. Using the fuzzy comprehensive evaluation method, uncertain problem can be transformed into quantitative evaluation.This paper combines the advantages of the two to establish the model of rough sets and fuzzy comprehensive evaluation, then it uses the model to evaluate the competitiveness of commercial banks. In terms of the evaluation methods of the commercial banks competitiveness, this paper provides a new and more practical method.Due to the rough sets has the advantage of indicators reduction, this paper establishes a more comprehensive evaluation index system for considering the factors affecting the competitiveness of commercial banks. In the case of some correlation between indicators and even some index redundancy, this paper firstly uses the attributes reduction of rough sets theory on the index system of reduction.Then based on the data using the objective weighting method of rough sets theory, the paper getsweight which eliminates the subjectivity of the commonly used method in the past,and it generalizes the method of determining the weight of one level index in common literature to two levels. Finally, because of the evaluation of competitiveness of commercial banks is usually fuzzy, this paper uses the fuzzy comprehensive evaluation method to analyze the competitiveness of commercial banks, according to the results, it puts forward several countermeasures and suggestions. This paper is divided into six chapters, specific content as follows:In chapter 1, this paper firstly states the current challenges and development trends faced by our country’s commercial banks, analyzes the necessity to enhance the competitiveness of commercial banks, summarizes the research background and research significance. Then it reviews the literature at home and abroad, and indicates the reason for using the rough sets- fuzzy comprehensive evaluation model to analyze the competitiveness of China’s commercial banks. Finally it gives the research methods, innovation and deficiency.In chapter 2, this paper firstly illustrates that the commercial banks have both generality and specificity as one of various types of enterprises. Secondly, this paper introduces concepts and related theories of competitiveness and enterprise competitiveness. Finally, according to the characteristics of the commercial banks this paper summarizes the concept and elements of competitiveness of commercial banks.In chapter 3, based on the competitiveness theory of commercial bank, the "three" principle in our commercial banks’ operation and the principle of constructing evaluation indicators, the paper establishes the competitiveness evaluation index system of the commercial banks of our country which combine six primary indicators and thirty two secondary indicators, these indicators lay the foundation for later empirical research.In chapter 4, this paper firstly expounds and evaluates the frequently-used evaluation methods of the competitiveness of commercial banks currently. Then based on the basic idea and attribute reduction of rough sets theory, the objective weighting method and the idea and modeling process of fuzzy comprehensive evaluation model,the paper analyzes the organic combination of rough sets and fuzzy comprehensiveevaluation, and gets the feasibility of using this method to evaluate the competitiveness of our commercial banks.In chapter 5, this paper selects sixteen listed commercial banks as evaluated objects, and it collects indicators data from the annual reports published by the bank’s official website and the country’s financial yearbook. Using rough sets-fuzzy comprehensive evaluation model on the empirical research. In the end this paper combines evaluation indicators and empirical results to analyze the competitiveness of commercial banks in our country. According to the results of the empirical analysis,and combining with the reality, this paper puts forward corresponding countermeasures and suggestions on how to enhance the competitiveness of commercial banks in our country, such as the market positioning, economies of scale,the internal control, human resources,financial innovation and so on.In chapter 6, according to the analysis results in chapter 5, the paper gives conclusion and expectation.Using rough sets and fuzzy comprehensive evaluation model, this paper dose an research on the competitiveness of our commercial banks based on the research results published by research achievements of domestic and foreign commercial banks. Through this paper, it can provide several references on how to improve the competitiveness of commercial banks in our country.