The Competitiveness Appraisal Model Based Of Commercial Banks On Gray System Theory

According to the promises of China when she entered the WTO, the banking of China would be entirely opening-up. And the banks whatever they are domestic or international would be treated with national treatment. The domestic banking is faced with severe challenges. So the measures should be taken to improve the competitiveness of the domestic banking. At the same time, the existing approaches and system of the competitiveness appraisal are artificial or not all-around. So how to appraise the banks' competitiveness scientifically is a big problem that demands prompt solution.The research of this paper chooses some representational indexes from many indexes; the weights of indexes are calculated by principal component analysis and gray relational advantage analysis. Which resolves the problem that the weights are calculated subjectively and avoids the demands of large sample and typical distribution of former research. This model is a new competitiveness appraisal approach and thinking for commercial banks.Appraisal result shows that the competitiveness of the joint-stock commercial banks is better that that of the non-joint-stock ones, and four state-owned commercial banks did badly in their competitiveness. Among the joint-stock commercial banks, Shen Zhen Development Banks has the highest competitiveness and Guang Dong Development banks finishes last. Of the state-owned banks, China Bank finishes the first and China Agriculture bank gets last.The main characteristic and innovation of this paper lie in three following aspects. The first character and innovation of this paper lies in building ideal commercial banks with the most powerful index of all banks. After ranging the relational extend between the appraisal commercial banks and ideal commercial banks, the rank of the relational extent is the rank of the competitiveness of commercial banks. Secondly, with the limited statistical data, this paper uses gray relational analysis to appraise the competitiveness of commercial banks. This approach avoidsthe demands of large sample and typical distribution of former research and makes the competitiveness appraisal model for commercial banks be widely used. Thirdly, this paper chooses the stable and representative bank, applies principal component analysis and gray relational advantage analysis with the data of representative bank, and finds the extent between indexes and synthetically score. The index weights are more objective, avoiding the more subjective weakness of former research.