Analysis And Evaluation On The Financial Competitiveness Of China Listed Banks

Financial turmoil from the U.S2008has resulted in significant international anddomestic environment changes, especially on the real economy fatal blow. In the currentfinancial crisis, China’s banking industry suffered from the pressure of the financial marketsand the government dually. In the financial markets, many large customers take cautiousapproach to investment and have more stringent requirements for financial products. Smalland medium-sized enterprises are facing survival crisis and banks have greater credit andaudit efforts. In the market, the risk is performing upgrade.For the government, in order to expand domestic demand, the state has adjustedeconomic policy from the original tight policy into a moderately loose policy. At the sametime, the loan interest is reduced by the central bank. Because the differential interest rate isan important pillar of bank revenues. It can be seen that the reduction of the loan interest isundoubtedly a challenge for the Chinese banking sector.Based on the background above, this paper will satisfy the objective demand ofpromoting the core competitiveness for Chinese listed banks and the paper focuses onfinancial competitiveness of Chinese listed banks. The main research conclusions are asfollows:(1) The paper analyzes the connotation of financial competitiveness of the listed bankThe paper argues that financial competitiveness is composed by financial strategy，financialresources, the basic financial ability and financial executive power, based on this, the papercarefully analyzes the financial competitiveness of Chinese listed bank.(2) The paper constructs the financial competitiveness evaluation index system ofChinese listed bank, which mainly includes four primary indexes such as asset status, assetquality, profitability and liquidity of asset and eleven secondary indexes such as core capitalratios, capital ratios, bad loan ratio..(3) The paper uses the factor analysis model and the corresponding data processingmethod to objectively evaluate financial competitiveness of14Chinese listed banks. Thefactor analysis shows that financial competitiveness of Chinese listed bank is composed offour factors such as profitability, capital status, asset quality, asset liquidity ratio. Incomprehensive rankings of the financial competitiveness, bank of Beijing is in the first placeand bank of Shenzhen development bank is in the last place.(4) Based on the evaluation results, this paper puts forward four corresponding measuressuch as enhancing profitability, ameliorating capital status, improving the quality of the assets, speeding up circulation of the liquidity ratio.To some extent, the result of this paper solves the key problems of financialcompetitiveness of Chinese listed bank. On the one hand, it can enrich financialcompetitiveness theory of Chinese listed bank; on the other hand, it will be theoretical basisfor the government or the banks to make scientific decisions.