Analysis On China's City Commercial Banks' Competitiveness

Finance is the core of modern economy,while bank sector is the key area of finance sector,which plays an active role in promoting the development of economy and companies,also its status becomes more and more important in the social and economic life.After thirty-year reform and development,now it has build a bank system including State -owned Commercial Banks,Policy Banks,Joint-stock Commercial Banks,City Commercial Banks,Rural Commercial Banks,Rural Corporation Banks,Credit Cooperative Associations and Foreign Banks in our country.City Commercial Banks are the local joint-stock commercial banks which were set up in the basis of urban credit cooperatives and shared by the companies,residents and local financial investment stake,since the first City Commercial Bank set up in 1995,it has survived for 14 years,and gone through four stages of infancy,expansion,integration and standardization. Now city commercial banks become an irreplaceable strength in our country's bank system.Although their market share is still low,their growth is very fast,reflecting strong growth potential and a good momentum of development. By the end of 2007,the total asset of City Commercial Banks in our country increased to RMB 3.34 trillion yuan,the total profit was 24.81 billion yuan,The average ROA rose from 0.33%in 2002 to 1.03%in 2007.In addition,City Commercial Banks' ROE also increased rapidly while the Non-performing loan ratio decreased year of year.The development of urban commercial banks,enriches domestic financial system,promotes the level of financial services and optimizes a diversified financial system.City Commercial Banks persist to the mission of "serve the local economy,small and medium enterprises and urban citizens," in their operation,playing an important role in supporting the local construction.On the other hand,as the competition intensifies,the distance among City Commercial Banks is increasing,some good banks has entered the track of rapid development,and even begin to layout regional development,while there are still a large number of City Commercial Banks troubled for lack of capital,low asset quality,high non-performing assets ratio and low level of profitability.In this case,the future path of the City Commercial Banks and its competitiveness issue has aroused widespread concern.Now It has become a hot topic of discussion.But there are few researches focused on the competitiveness of City Commercial Banks.So this article hopes to establish an evaluation of the competitiveness of City Commercial Banks by drawing on the general competitiveness theory of enterprises,combining with the specificity of the banking sector,and taking into account of competitiveness evaluation systems of commercial banks abroad.On this basis,it analyzes the competitiveness of six City Commercial Banks using this evaluation system,so as to know the competitiveness of all the City Commercial Banks.Finally the article raises some suggestions in order to enhance the competitiveness of our country's City Commercial Banks.This article has five divisions.The first part is introduction,which described the study background and research ideas,it also provided an overview of domestic and foreign scholars' relevant theoretical results.The second part mentioned City Commercial Bank's history and current state of development.The third part of this paper,it established an evaluation of the competitiveness of City Commercial Banks by drawing on the general competitiveness theory of enterprises,combining with the specificity of the banking sector,and taking into account of competitiveness evaluation systems of commercial banks abroad.In the fourth part,it chose six largest and strongest City Commercial Banks and analyzed the competitiveness of these banks using the evaluation system.In the last part of this article,it raised several strategies and measures,based on the former analysis in order to enhance the competitiveness of our country's City Commercial Banks.