The Research Of China's Listed Banks Competence Evaluation

In a banking-oriented financial system in China, the status and role of the banking industry is very prominent. It directly affects and constrains China's economic and financial reform and growth. After China's accession to the World Trade Organization, Chinese government fulfilled its commitment of financial openness. And after the banking industry had entered a full-open situation, as the lifeblood of our national economy, the banking industry is facing great opportunities and challenges. In this extremely complicated international economic situation, the only choice for the development of China's banking industry is to enhance competitiveness fully by Promoting China's banking sector reform process on the basis of follow the rules of forming and strengthening the bank competitiveness and combined with local characteristics.This article systemicly reviews the content and the affecting factors of competitiveness, the competitiveness of enterprises and the competitiveness of commercial banks. Combined with the particularity of Chinese listed banks, in compliance with the principle of comprehensive, systematic and accessibility, we establish the competitiveness evaluation index system of China's listed banks from core competitive and General competitive. In the part of empirical analysis, taking 14 Chinese listed banks as the objects, such as Industrial and Commercial Bank of China, Bank of Communications, Minsheng Bank and Huaxia Bank, combined the data on September 2009 of the 14 listed banks, I make some objective evaluations on their competitiveness.This article use the principal component analysis method,factor analysis method,osculating value method and entropy value method to give some prize for the listed bank's competitiveness. Then we can obtain several evaluation values and ranks of the competitiveness of 14 listed banks. At last, we use Spearman rank correlation coefficient to test the econometric results. The results show that Industrial and Commercial Bank of China, Construction Bank, Industrial Bank, Bank of Communications and Bank of Nanjing are the top five listed banks.Finally, the paper analyzes the problems during the development of China's listed banks, and propose several suggestion to enhance the competitiveness of listed banks in China, such as weakening the affecting from the government to the banking,establishing a scientific and effective system of risk management,changing diversified business to mixed operation and strengthening the capacity of business innovation.