The Competitive Advantages Comparisons Of Four Public Commercial Banks

The competitive advantages comparisons of four public commercial banks As the perpetual reformations and development of Chinese finance system and China's entry into WTO, the competition among Chinese commercial banks are more and more seriously. After China's entry into WTO, the financial market will be open to the world. There will be a shock for the Chinese financial industry which is in the developing stage. Although in the past 20 years, Chinese financial industries make great progress, there still exists many problems such as low efficiency, immature systems because of the lack of bank competition abilities. As the leaders of the Chinese financial industry, Chinese commercial banks' competitive advantages will affect the Chinese future economic development.Most Chinese commercial banks no matter they are public or not, all choose to improve their competitive advantages and preventing risks which are caused by bad assets as developing strategies and by issuing stocks to enlarge capitals, perfecting corporation organizational structures. Under this background, this paper hopes to compare the competitive advantages among four public banks include China Merchants bank Co.,LTD, Shenzhen development bank Co.,LTD, China Mingsheng bank co.,LTD and Pudong development bank Co.,LTD. by building commercial bank competitive theory frames and index systems. Of course, the theory is based on the previous research results in the world. In the one aspect, I try to find the differences and sameness among these four banks. On the other hand, I will evaluate the competitive advantages of these four banks and provide advices for investors. At the same time, I hope it will do some help for those future public commercial banks.The first part is basic theory which concentrates on the introduction of present bank competitive theories and gives the definition and the relationship between the bank competitive advantages and bank performances.The second part describes the present situations and features of Chinese commercial banks, at the same time, describing the public commercial banks' features and competitive situations.The third part builds up the evaluation theories according the first and second parts, providing the theory frames and index systems. Also it concentrates on the "three features" rule which include liquidity, security, profitability, and development ability to introduce all kinds of index systems and provide the relationships among those features.The fourth part uses above theory to compare and analyze the four public commercial banks, and give explanations to the research results. Then it gives advice to improve the bank competitive advantages. In the end of the paper, it will give the significance and disadvantages of this theory.