Analysis On The Competitiveness Of China’s Coastal Urban Commercial Banks

Recently, small and medium-sized enterprises (SMEs) and private economic hasdeveloped rapidly, in which urban commercial bank plays a vital role. Originallyurban commercial bank was founded in the1990s in order to defuse the risk of urbancredit cooperatives in the process of reform and opening, and it is a reasonable systemarrangement for the development of market economy in China.The Urban Commercial Bank was important and special in the existing bankingsystem, and plays an important role in deepening financial reform, improvingfinancial services for SMEs, and promoting local economic, preventing and defusingfinancial risks, and maintaining social stability. With the advance of economicglobalization and regional economic integration, as well as financial system reform,the situation China’s urban commercial bank faced is becoming more and more severeboth in the domestic and international. Therefore, urban commercial bank as a specialsubject faces great difficulties in such a fierce competitive environment. And it isimportant for the theorists and actual financial workers to work out how to improvecompetitiveness of the urban commercial banks and how to develop better and further.This paper firstly analysis the origin of the competitiveness and the meaning ofthe competitiveness of enterprises, and based on the characteristics of urbancommercial banks, then define the competitiveness of urban commercial bank.Secondly, the paper builds a competitive evaluation system for the urban commercialbanks, and divides the competitive of the urban commercial bank into two parts. Nextseparately sets twelve and nine weighting indexes for them, and then select17coastalurban commercial banks as the objects, and the data is from the2010annual report ofeach bank. Thirdly, the paper chooses FAM and AHP to compare the competitivenesslevels of these17urban commercial banks. Lastly, through the comprehensiveanalysis of the empirical results of the city commercial banks, the paper proposescountermeasures to enhance competitiveness of urban commercial banks in China: setting a clear market positioning, providing professional services with financialinnovation, better the corporate governance structure, and strengthen riskmanagement and operational capabilities.