Research On The Competitiveness Of Agricultural Bank Of China

With the pace of global economic integration accelerating and the financial system and regulatory maturing, the openness of the banking sector is increasing. Banks, as the pillar of a country's financial, are in the face of increasing competition and competitive pressure. A bank's competition is the kay sector to determine it's development and survival.In this paper, Agricultural Bank of China is studied. On the base of summarizing competition theories on commercial banks in the world, Commercial Bank Competitiveness Evaluation System is divided into two aspects of financial indicators and non-financial ones. On the principle of representativeness, comprehensiveness, comparability, practical and full reference, financial indicators include liquidity, profitability, safety and organizational development capacity. These four indicators contain liquidity ratio and loan-to-deposit ratios; average total assets returns, cost income ratio and earnings per share; capital adequacy ratio, core capital adequacy ratio, non-performing loan ratio, NPL coverage ratio; asset growth rate, deposit growth rate, loan growth rate and pre-tax profit growth rate. Non-financial indicators include human resource structure, corporate governance ability, innovation ability and the characteristic services.We selected the top seven domestic commercial banks in the world 1000 banks of 2010 published in the British"Banker"magazine, as Agricultural Bank of China's major competitors. They are The Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Bank of Communications, Citic Bank, China Minsheng Bank and China Merchants Bank. The financial indicators and non-financial ones are compared during these banks. It is the conclusion that the organizational development ability, flowing management ability, and its characteristic business are well developed, while its profitability, safety management ability, human resources and innovation ability remains to be perfected and improved.According to these problems, countermeasures and suggestions are put forward to improve the competitiveness of Agricultural Bank of China: expanding the business scope, increasing product of innovation, emphasis on technology, perfecting the corporate governance structure, strengthening internal control, strengthen enterprise culture construction, increasing risk awareness and control ability, strengthen the training and development of human resources and so on.