Empirical Study Of City Commercial Bank Competitiveness And Its Influencing Factors

Banks are the lifeblood of the economy and act as an important channel for financial intermediation. Compared with other countries, banks play a more important role in China where indirect financing is the main form of financing structure. City commercial banks are a special part in China's financial system. With the progress of the financial reform and the opening up of the banking sector, the competition between banks is becoming more and more intense. Compared with the state-owned commercial banks, joint-stock commercial banks and foreign banks, the city commercial banks are confronted with more challenges and survival pressure. Therefore, how to speed up the reform of city commercial banks and how to improve their competitiveness become an important problem in theory and practice. Financial environment is a focus in national research field in recent years. In our country, there are non-equilibrium states between regions as well as great differences in external environment, which exerts important influence on the quality of regional financial assets. The city commercial banks provide us a rather good example to analyze this problem. In light of the above points, this paper uses empirical methods and regression model to find out the key factors that influence the competitiveness of city commercial banks from the perspective of both the inner influencing factors and the external financial environment, hoping to provide certain references to enhance the performance and competitiveness of city commercial banks. The whole paper consists of six parts.Partâ… : Introduction. This part summarizes the research background and purpose of the paper, and states the framework of the research and innovations.Partâ…¡: Literature reviews. Based on the reviews of the theories of competition, competitiveness and enterprise competitiveness, this part summarizes and evaluates the related research on bank competitiveness at home and abroad. Moreover, it introduces financial environment theory briefly.Partâ…¢: Theoretical analysis of commercial bank competitiveness. Commercial bank competitiveness includes three parts: current competitiveness, potential competitiveness and environmental competitiveness. Current competitiveness is the actual performance of bank competitiveness, that is to say, financial evaluation, which consists of profitability, asset quality, capital adequacy and asset liquidity. Potential competitiveness reflects the internal factors influencing bank competitiveness, which focuses on corporate governance, financial innovation and information technology and human resources. Environmental competitiveness means external financial environment, which mainly consists of economy development, government intervention, legal environment and credit culture.Partâ…£: Development process and status quo of city commercial banks. This part briefly describes the foundation, development and the reform status quo of city commercial banks.Partâ…¤: Empirical analysis of city commercial bank competitiveness. On the basis of the theoretical analysis of commercial bank competitiveness, this part empirically analyzes the competitiveness of 28 city commercial bank samples. It uses the weighted average method and calculates the scores of current competitiveness of 28 city commercial bank samples. Then it sets the scores as explained variable and the indicators of potential and environmental competitiveness as explaining variables, sets up regression model, and analyzes the key factors that influence city commercial bank competitiveness.Partâ…¥: Recommendations for improving city commercial bank competitiveness.