Analysis On The Competitiveness Of China’s Commercial Banks After The Financial Crisis

The financial system is the lifeblood of national economic development in our country,and the commercial banks are the important part of it. In somehow, the development of thecommercial banks leads the financial system to continuous improvements, drives socialeconomy to a continuous development. As we all know, our commercial banks havesuffered some bad effects from the financial crisis in2008, the main performance is thedeclining in banks’ income growth. In recent years, the financial reform has been deepened,our government has also given a further analysis on the causes of the financial crisis andthe defections of financial supervision mechanism. In terms of our financial system,commercial banks themselves are also heading for improvements and developments,occupying a favorable place in the financial market by promoting their competitiveness. Ineconomic area, competitiveness is a comprehensive index, it is used to compare advantagesor strengths between different subjects, so as to measure the comprehensive performance ofspecific industry in competing market.Based on literature review of bank competitiveness at home and abroad, this paperattempts to use factor analysis method, taking China Construction Bank as the example,analyzing on competitiveness in an empirical way. In the middle part, this paper introducesthe basic theory and mathematical model of factor analysis, then chooses16listedcommercial banks with14financial indices which are commonly used as the objects, theseindices including the total assets, main business income, net profit, provision coverage, costto income ratio, loan to deposit ratio, asset liability ratio, capital adequacy ratio, cost andprofit rate, net profit growth rate, total profit, operating expenses, deposit growth rate andthe normal loan migration rate. Based on financial data of the indices in2012, this paperuses factor analysis method to analyze on the competitiveness of these commercial banks,with factor scores and rank. The results show that: China Construction Bank performs well in its financial status, business operation and risking control ability, but bad in innovationability and basic deposit and loan businesses. Therefore, based on the results of factoranalysis, this paper gives a further analysis on the performance and possible reasons.Finally, according to the results and combining with the experiences of developments,problems and countermeasures in these countries, this paper puts forward to somecorresponding suggestions to promote competitiveness of China Construction Bank. Themain suggestions include increasing brand innovation, strengthening talent teams andpositioning a clear strategic market. Hoping these suggestions can offer a reference to ourcommercial banks to increase their competitiveness.Using factor analysis method to analyze and evaluate the competitiveness of commercialbanks can solve the problems of subjective randomness in a justice way as well as technical.So the commercial banks of our country can take adjustment according to presentcompetitive situation, adopt countermeasures to overcome the short aspects, strengtheningcompetitiveness. Finally, we can deepen the financial reform and promote the wholefinancial system by these measurements.