Empirical Research On Competitiveness Of City Commercial Banks In China

Banking industry is a key area in finance institution and acts as an important channel for financial intermediation in our country. It plays an active role in the development of our national economy. As important components and special groups of China's banking industry, city commercial banks are the products of reform of the financial system after the Reform and Opening up policy was carried out in China. They have brought prosperity to our national financial markets. Compared with the state-owned commercial banks and joint-stock commercial banks, city commercial banks forms suitable expansion road and have obtained remarkable achievements in our country, however, meanwhile, they are confronted with grand challenges. Therefore, how to improve the competitiveness has caused widespread concern and becomes an important problem in theory and practice.This paper studies the competitiveness of city commercial banks by comparing them with the state-owned commercial banks and joint-stock commercial banks. This paper establishes a system of evaluation index of commercial banks. It chooses thirty-five indexes and uses data of ten city commercial banks, five state-owned commercial banks and six joint-stock commercial banks. Then it screens index by using clustering method, after that, it obtains the score and ranking of the competitiveness of these three kinds of banks by using factor analysis method. At last, this paper raises some recommendations for improving the competitiveness of China's city commercial banks.