A Comparative Analysis Of The Competitiveness Of Mainland Commercial Banks And Hongkong Commercial Banks

With the deepening of economic reform, China’s economy faces with the situation of extensive-rapid development mode changing into intensive development model. And the reform of China’s banking industry has been deepened. The interest rate market is gradually carried out. In general, the entire banking industry maintains a steady pace of reforming progress. China Banking Regulatory Commission, the Commission and other departments think deepening reform, risk prevention and support the development of the real economy as the core, so the banking industry gradually develops healthy in the appropriate regulatory efforts. However, inside the banking industry,competition has intensified,the Chinese commercial banks are facing a huge pressure of transition and a number of challenges. Single profit model by savings and loan interest rate differential will have to turn to several models by relying on a number of intermediary services, so the uncertainty of the development of China’s commercial banks will continue to strengthen. And the development of Hongkong’s financial industry has a long history,which has the main body consist of commercial banks and securities investment, insurance, stocks, gold, foreign exchange,futures,financial leasing and other financial institutions,supplemented by offshore business and domestic business both organic integration of diversified advanced financial system. As one of the world bank centers, Hongkong’s banking industry is more advanced than the mainland.This paper selects 8 mainland commercial banks and 4 commercial banks in Hongkong to evaluate the competitiveness using the financial indicators. The structure of this paper is divided into: in the first chapter, this paper build a financial evaluation of the joint-stock commercial banks competitiveness index evaluation system combined with the previous research experience and describes the characteristics of the construction of the index evaluation system. In the second chapter, by using the selected 12 financial indicators,the paper makes a descriptive statistical analysis of the mainland commercial banks and Hongkong commercial banks and finds out the specific circumstances of the various aspects of the bank.And it finds out the difference between the mainland commercial banks and the commercial banks in Hongkong. In the third chapter, the evaluation system of competitiveness index is used to construct the comprehensive competitiveness of commercial banks and commercial banks in Hongkong by using factor analysis method. The fourth chapter, according to the descriptive statistical analysis and factor analysis of the results of empirical analysis.In view of the problems existing in the mainland commercial banks,this paper provides policy recommendations. By learning from commercial banks in Hongkong,mainland commercial banks should improve the risk assessment model risk control personnel mechanism and risk management culture to enhance their risk control capabilities. In addition, the mainland commercial banks also need to enrich the diversity of non-interest income business.The development of Hongkong commercial banks is relatively slow.They need to grasp the opportunity to introduce preferential policies and measures for the internationalization of the RMB which will provide more room for development.