Research On The Competitiveness Of China's Commercial Banks

Finance is the core of the modern economy and a country's national economy, playing a decisive role in the development of the national economy. Although China's capital market in the 20th century, 90 years has made considerable progress, but because of historical and institutional reasons, today, the banking sector still holds the dominant position of China's financial sector, remains the backbone of China's financial system. Therefore, to turn China into an economic power and financial power, we must rapidly improve the competitiveness of China's banking industry and maintain its sustainable development.This paper begins by the competitiveness of enterprises based on the general theory to explain the basic concept of the competitiveness of enterprises ,to features a clear competitive edge of the special nature of commercial banks ,to explore the nature of its defined meaning and Bank Competitive Analysis methods were reviewed and a brief Comments for the empirical analysis below provides a theoretical support.Secondly,Design a system consisting of 15 indicators, which reflect the scale of strength, risk management capacity,development capacity,profitability and innovation capacity.Finally, select 14 domestic listed banks for empirical analysis. In the empirical analysis section, this article of 14 listed banks as object of study, using factor analysis method to determine the weight of each indicator, and use the results of combined rating factor and cluster analysis of individual competitiveness of the banks were sorted, a detailed analysis of of China's commercial banks competitive position.The empirical results of the factor analysis show that : the banks which integrated with the highest scores are Bank of Ningbo, followed by Industrial and Commercial Bank of China , the Nanjing Bank, China Construction Bank and Bank of China, Minsheng Bank and Huaxia Bank integrat with the lowest scores; F1, F2, F3, F4, F5 factor with the highest scores of banks are Industrial and Commercial Bank, Beijing Bank, Bank of Ningbo, Shanghai Pudong Development Bank and China Merchants Bank; F1, F2, F3 factor with the highest scores of banks is the bank of China ,Minsheng Bank, F4, F5 factor with the highest scores of banks are Shanghai Pudong Development Bank and Huaxia Bank. the original state-owned commercial banks ranked better than the emerging commercial banks. Cluster analysis showed that Bank of China, Industrial and Commercial Bank, Bank of Ningbo, Nanjing Bank and Construction Bank, grouped into one category, Bank of Communications, China CITIC Bank is classified as a category, Shanghai Pudong Development Bank, China Merchants Bank, Industrial Bank and Bank of Beijing classified as a class, Shenzhen Development Bank and China Minsheng Bank is classified as a class.According to factor analysis and cluster analysis results, in order to improve its strength in terms of scale, risk management capacity, development capacity, profitability and innovative abilities, propose strategic for the existing commercial banks problems by expanding the size of capital ,improve risk management measures, improve profitability and promote business innovation for the existing commercial banks have problems,.