The Evaluation Of The Competitiveness Of China's Commercial Banks

Accessing the competitiveness of the Chinese banking sector is the paramount importance to the financial sector, the core element of running a modern economy model in China. How to enable it to effectively participate in an international context? Exploring the competitiveness of Chinese banking sector, understanding the gaps between Chinese banks and global leading banks will play an important role in efficient strategy formulation to ensure healthy growth.Based on the theories of commercial bank competition, the research devotes to shape criteria on bank competition measurement can be contributed to well understanding of the present bank competitiveness? Factor analysis is used to the case study with comparing to the established evaluation and the results display top three key factors and bank competitiveness ranking out for Chinese commercial banks as well; The "top four" state-owned banks are the most powerful of capital strength while joint-stock banks, especially those listed, are significantly advanced in management than others."Top four" state-owned banks in China, as well as the global leading banks in United States, UK and Japan are selected for the comparative study and it shows the deficiency of Chinese commercial banks. Thanks to SWOT analysis, the advantage and disadvantages are found for Chinese commercial banks. The suggestions given in the end is that competitiveness improvement relies on the reform and development of China's banking sector associated with the government, banking sector and the China Banking Regulatory Commission, by efficiently utilizing international financial regulations.