The Study On The Competitiveness Of Chinese Joint-Stock Commercial Banks

Competitiveness of commercial banks theory is a theory still in development, and researches on this theory are not very mature. In foreign countries, there is no specific theory of competitiveness of banks, but proposing directly research framework when doing competitiveness of banks research. In China, the theory of the competitiveness of commercial banks can be divided into two categories: one category is to consider commercial banks as the special enterprises, based on the basic theory of the competitiveness of enterprises, and to propose the competitiveness of commercial banks theory; the other category is, based on the general theory of competition, to create a new theory of the competitiveness of commercial banks. With the discussion of the theory of the competitiveness of commercial banks, the analytical framework, the methods of analysis, empirical research and political suggestions, this paper is trying to help to improve the competitiveness of joint-stock commercial banks, by analyzing the data in 2008 of 14 listing banks.This paper establishes its competitiveness evaluation system of Chinese commercial banks, and does empirical research based on that. The factor analysis method reveals the level of competitiveness of Chinese commercial banks, its main influencing factors, and the advantages and disadvantages of its competitiveness; hierarchical clustering method separates three levels of competitiveness of the banks, and considers big competitiveness differences from joint-stock commercial banks to state-owned commercial banks as well as city commercial banks.Through our discussion of the three categories of banks, including joint-stock commercial banks, city commercial banks and state-owned commercial banks, we get our conclusions. First, the key factors to enhance the competitiveness of Chinese joint-stock commercial banks are expanding the size of banks, increase the deposit and loan market share, enhance capital strength, have effective cost control. Second, some other big influential factors include asset structure, income structure, property rights. Especially, human resources is a positive factor but just have limited positive influence. Third, simply market expansion can not improve the competitiveness. Management improvement, cost control management should be the goals need pursuing. Finally, we get the policy recommendations as follows:①expand bank size, increase market share;②raise the capital adequacy ratio;③timely adjustment of credit business focus;④improve cost management;⑤complete corporate governance and internal control mechanisms.