A Study On The Competitiveness Of China's A-share Commercial Banks

The financial industry is an important part of national economic development.As the core organization of financial industry,commercial banks' dominant position is unshakable.However,in recent years,with the full liberalization of China's external economic businesses,the liberalization of interest rates and the rise of internet technology finances,China's commercial banks are facing multiple pressures from the influx of foreign banks,fierce competition among banks and fierce attacks of internet technology finances.Under such a stressful financial background,how to improve their competitiveness is a hot research topic in the field of commercial banks.At present,the researches on this problem mainly focus on factor analysis,which is unreasonable in practical application.Therefore,this paper researches this problem from the aspect of regression by using LASSO and Adaptive LASSO model with the hope of serving as a reference for China's commercial banks.This paper selects 21 A-share commercial banks as sample banks from four types and chooses the return on assets as a dependent variable which can measure competitiveness.It also chooses 17 independent variables which are current ratio,loan-deposit ratio,net profit growth rate,proportion of business and management expenses and so forth.Then,this paper establishes the LASSO and Adaptive LASSO regression model to find out the main factors which affect the competitiveness of commercial banks.Also,it uses system clustering method and k-means clustering method to make cluster analysis of 21 commercial banks.The purpose is to verify the rationality of classification according to bank attributes.The results show that the main factors which influence the competitiveness of commercial banks in China are mobility and security ability,growth ability,innovation ability,scale strength and the efficiency of management.And it is reasonable to classify commercial banks according to their attributes.Finally,according to the conclusions,this paper proposes countermeasures and suggestions such as strengthening innovation ability,perfecting risk management mechanism,strengthening human resource management,increasing the size of assets reasonably and controlling liquidity reasonably.It expects that China's commercial banks can make great progress beyond their existing achievements.