Research Of The Competitiveness Of Commercial Banks Based On CAMEL Ratings

Finance is the core of modern economic development. The level of financial development and degree of deepening has become a guideline of a country to measure the level of economic development. After China's reform of the financial system in over past 20 years' practice, China has shaped a financial system which is formed mainly state-owned commercial banks, joint-stock banks, non-bank financial institutions and it has fostered the multi-division of collaboration. In the mean time, the development of China's domestic banking sector has been closed to international competitiveness, as well furnished the same support of the national economy, whose development is also led with an increasingly bulk. Having the membership of WTO, China has witness a transitional period of more fierce competition in the banking sector, financial depth development of globalization, the world's financial markets become more closely linked to the increasing degree of internationalization. Under this new circumstance, China's banking sector not only meets the development of new opportunities and. faces challenge more serious, situated in this transitional and developmental period of vital importance. In general, it is imperative to upgrade the core-competitiveness of China's banking sector.The theme of this research paper is the core-competitiveness of listed commercial banks in China, on the basis of the competitiveness of enterprises in the theory and based on the theatrical competitiveness of commercial banks, making them as the foundation that the research scholars from home and abroad, with utility of factor analysis and data envelopment method to carry out the competitiveness of Chinese listed banks by comparison and construing on China's future development of the commercial banks, out which a few recommendations can be pull .For the starters, my paper makes a special Elevator Pitch regarding enterprise competitiveness Theory analysis, analysis of competition in the banking sector to build up the theoretical framework of research theoretically, based on the CAMEL model selection framework, constructing a the evaluation system of Chinese commercial bank listed in the competitive aspects; Second, with using the consolidated financial data of all commercial banks in 2007, and with the help of SPSS software for empirical analysis, the competitiveness of the various banks score, it would rank out the final position of the bank; Finally, the results of empirical studies need analyzing to illustrate the position significance and content, leading to the conclusion that China's commercial banks lack competitiveness due to some internal and external factors, and accordingly put forward to certain proposals and countermeasures to enhance the competitiveness of China's commercial banks.