The Study Of The Structure Of Commercial Banks Reputation Based On SEM Model

Commercial bank is an enterprise of operating funds, which relies on its ownreprtation to absorb capital and lends to corporate and personal according to theircredit; Commercial bank is not only responsible to its shareholders, creditors andother stakeholders,but also the community and financial stability. Therefore, we cansay that Commercial bank’s reputation is the foundation of its existence.2008subprime mortgage crisis given the global economy a major disaster, which alarmChina’s banking system to maintain a good reputation in the growing process and toavoid heavy loss origining from reputation risk at the same time. Thus, August25,2009, China Banking Regulatory Commission announced "Reputation RiskManagement Guidelines for Commercial Banks," which clearly requires commercialbanks to put reputational risk management into corporate governance andcomprehensive risk management system and emphasizes the central role andresponsibilities of the board in the governance.When we want to manage the reputation risk, we must evaluate the reputation ofthe bank and identify the key factors that could impact commercial bank’s reputationfirst. However, we will get different factors from different views. Beacausecommercial banks’ aim is to maximize profit for its stakeholders, so this article willevaluate commercial banks’ reputation from the perspective of commercial banks’stakeholders. Firstly, we will evaluate commercial banks’ reputation from the socialresponsibility, products and services, business performance, leadership and vision,benefits and welfare, stability, and view those factors as the base when thestakeholders cognitive commercial banks rationally and evaluate commercial banksemotionally. Secondly, from quastionaire data we comform that the six factors playdifferent role when form the banks’ reputation. We find that from the perspective ofemotional evaluation, business performance have no impact, leadership vision,benefits and stability have some acts, social responsibility and products and serviceshave greatly impact; from the perspective of rational cognitive, products and services,business performance, benefits and stability plays an important role, and socialresponsibility and leadership vision have less affected.