Research On The Competitveness Of China's Listed Banks

Being the core component of modern financial system,the commercial banks are playing more and more important roles in the process of economic and financial integratio.The sup-prime loan debt crisis of 2007 and subsequent international financial crisis brought great impact to global economy especially the banking industry,triggering deeper research on bank risk management,bank corporate governance,financial regulation,etc..It turns to be an urgent need for international banks and regulation authorities to find out the way to survive,develop and improve competitiveness under the complex international environment and numerous financial innovations.The majority of researches on bank competitiveness abroad were operated by institutions,only using a few indexes,while domestic researches mainly focus on qualitative or financial analysis,lacking of systematic and integrated quantitative analysis on components of bank competitiveness.In this paper,researches on the competition environment and components of competitiveness of listed banks,as well as empirical analysis on the competitiveness of China's listed bank,could help develop the theoretical and practical researches on China's bank competitiveness,and its result could provide important references on how to improve competitiveness of China's listed banks.This paper firstly defines the concepts and analyzes the characteristics of listed bank,competition,competitiveness and bank competitiveness.Secondly,the analyses of interbank competition,financial openness,technology and financial innovations are unfolded successively.The research indicates that the competition environment of China's listed banks is complex and intersected;however,it is beneficial to the bank development and improvement of bank competitiveness.Thirdly,the components of competitiveness of China's listed banks are divided into eight factors,respectively risk management capability,profitability,market share capability,corporate governance capability,human resource management capability,growth ability,service capability and capability of undertaking social responsibility.27 indexes are chosen afterwards to conduct factor analysis and cluster analysis on the competitiveness of 16 listed banks in China from year 2007 to 2011.The rankings of real competitiveness and potential competitiveness are proposed according to the factor scores,and the reasons of score and ranking change are analyzed.Then,the 16 banks are classified and further analyzed according to the result of cluster analysis.Through the factor analysis and cluster analysis,it is discovered that in general the competitiveness of listed banks in China are quite different,BOC,ICBC,ABC and CCB are fairly strong in competitiveness,while small and medium banks are comparatively weak.That is,the competitiveness of the four large banks is significantly higher than that of the other 12 banks.There is still big difference among the four large banks in the competitiveness,while the competitiveness of 12 small and medium banks is still not in the same level.ICBC is the strongest among the 16 banks,and China Merchants bank,Bank of Communications and China CITIC Bank are the outstanding among the 12 small and medium banks.This paper puts forward the pertinent suggestions in the end.The pertinent suggestions main include that the banks of the first kind should increase the service level,pursue uniqueness in products and clients,increase the capacity of social responsibility;The banks of the second kind should improve the profitability,implement the stragegy of regional disparity,enhance the enerprise culture and brand construction,implement the talent strategy,and be more stable in growth;banks of the third kind should increase the risk management capacity,and improve the corporate governance.