Competitiveness Study Of China's City Commercial Banks

After China's accession to WTO, the domestic capital market is gradually opening up, and the whole banking sector is in an increasingly competitive condition. Naturally, it will bring opportunities and challenges to our financial markets. With the accelerated pace of financial reform in China, four state-owned banks and Bank of Communications which introduced strategic investors and conducted share reform and then listed became to the five banks,foreign banks totally came into the domestic market,the gradual deepening reform of Rural credit cooperatives and postal savings, and the continuous deepening reform of China's capital market, the living environment of our city commercial banks undergoing profound changes, they are not only facing competition from domestic counterparts, but also from strong competitors in the international challenge. As of the end of 2010, the number of city commercial banks in China has reached to 147.The sheer number and the rapid development of city commercial banks make them playing an increasingly important role in the banking sector. City commercial banks of Middle-size are the typical representatives, which are the important parts for the small-size transit to large-scale. Medium-sized city commercial banks have not only faced with the pressure from the five major domestic banks and national joint-stock commercial banks, also faced a series of challenges by foreign banks coming into China's banking sector. City commercial banks are playing an increasingly important role in the banking sector, and about their systematic and comprehensive studies have become more urgent.This paper is based on the theory related to competitiveness, which is including the competitiveness of enterprises, commercial banks and financial ecological competitiveness (i.e., competitive environment) theory. Using these related theories to the research of competitiveness in China's city commercial banks, and which provide a theoretical basis and support to make China's city commercial banks more competitive, thus it will achieve the study's theoretical significance. Through the contrast about the competitiveness of medium-sized city commercial banks within the financial industry, the article analyzes and evaluates the effects on the whole city commercial banking sector which middle-sized city commercial banks make in real competitiveness,potential competitiveness and financial environment, then obtains their comparative advantages and comparative disadvantages, and finds out the key factors that hinder their developments, thereby more objectively reflect the middle-sized city commercial banks' status in the industry. On this basis, making appropriate policy recommendations will have some facilitating effects for the long-term development of medium-sized city commercial banks and China's city commercial banks.This article first describes the development of city commercial banks history and current status, then introduces the related competitiveness theory. As an individual, medium-sized city commercial banks belong to the whole city commercial banks, the theories also apply to medium-sized city firm. Through the comparative analysis of three aspects including the real competitiveness,the potential ecological competitiveness and financial ecological competitiveness, the paper comes to their comparative advantages and comparative disadvantages, opportunities and challenges faced, finally according to comparative analysis, to propose constructive ways and suggestions to improve competitiveness of medium-sized city commercial banks, and then enhancing the city commercial banks' competitiveness in the whole banking industry. Medium-sized city commercial banks should play their strengths, take the characteristics of the rea(?) and strive to enhance their competitiveness. On the whole, the studies of domestic scholars were focused on the evaluation of the competitiveness of commercial banks, and are still weaker on the cause analysis of less competitive. The results of a systematic study devoted to Competitive medium-sized city commercial banks are also relatively less. The article is based on reality and looking forward to the future, objectively analyzes, compares and evaluates the competitive situation of China's urban commercial banks, only for the current development, points out its problems and makes appropriate reform proposals and measures. This research will have a positive theoretical and practical significance to expand and enrich the study on the development of our city commercial banks. However, as the data which I could collect are limited, it is unable to penetrate to conduct a more detailed analysis on the entire city commercial banks, so there is great shortage in this research.