Research In Competitiveness Of Listed Banks In China

With the rapid rise of China’s economy, China’s banking industry has achieved rapiddevelopment. Concerning from the scale only, several big domestic state-ownedcommercial banks in China have ranked among the world’s largest banks. But the sameas with many other industries in China, the superiority in banking industry only reflectedin scale, not in competitiveness, which included many other factors besides scale. Aseconomic globalization develops in depth, the global financial markets have becomeclosely connected. The financial crisis in2008, which started from United State ofAmerican, not only influenced domestic market in American, but also caused the hugeimpact to the global financial market in the whole world. Just because our market isn’topen in the large scale, the impact to our country is relatively small. But along with thegradually opening to the outside world, our banks will face various challenges not onlyfrom other commercial banks and non-bank financial institutions in domestic market, butalso more and more foreign banks. Compared with foreign banks, there is a huge gap inboth capital strength and management level. Under this situation, we should improve thecompetitiveness as soon as possible, in order to catch up with the foreign banks, evengain the advantage in competition in domestic market and foreign market.Due to the significance of banks in the economy and financial system, a lot ofresearch in the competitiveness of banks has emerged in endlessly. The achievement inforeign countries mainly concentrated on the Michael porter’s theory of industrialcompetitiveness and Hamel and Prahalad’s core competitiveness model, focusing on thenational competitiveness and industrial competitiveness at the macro and meso level.However, specialized research in the competitiveness of banks at home is scarce. Relatedthe achievement are also focused on the theory at the meso and regulation level, whichlead to one-sided conclusion because of non-systematic. Research of this paper is basedon the existing competitiveness theory and research on the bank competitiveness,analyzing the influencing factor objectively and systematically through constructingevaluation index system. In order to improve the competitiveness of banks, we shouldhave a definite object and a clear understanding of ourselves, correct the mistakes andpromote in the whole. There are many research of enterprise competitiveness no matterin domestic or foreign countries. But because of the imperfect of indicator system and subjective factor, it hasn’t formed an authoritative and systematic system whichevaluated the competitiveness of banks. The purpose of this paper is to present anevaluation system, which can estimate the situation of competitiveness of listed banks inChina objectively and scientifically and put forward effective solutions.The first chapter of this paper introduces the theoretical basis of bankcompetitiveness, which includes Michael porter’s theory of industrialcompetitiveness and Hamel and Prahalad’s core competitiveness model. Through thebrief introduction of these theories, we get a primary understanding of bankcompetitiveness. Then explaining the meaning of bank competitiveness and factorsincluded when evaluating the competitiveness. The second chapter is to build acomprehensive evaluation index. In the foundation of the first chapter, we started fromtwo aspects. First one is the selection of indicators, mainly concerning the principal ofselection. The second one is choose factor analysis to be the method of analyzing thebank competitiveness, mainly including the construction principal and feasibility ofindicator system, comprehensive evaluation theory model of competitiveness and thebasic step of factor analysis. The third chapter mainly introduces the current situation oflisted bank competitiveness and descriptive statistical analysis, which includes fourpoints, scale, profitability, risk control and speed of development. The fourth chapter isthe empirical analysis. Using the relative data of16listed banks listed in A-share, whichhave been analyzed through SPSS, we conclude the ranking of these16listed banks insingle competitiveness and comprehensive competitiveness. And then we analyze thescale of banks, the factor of innovation ability, the factor of capital adequacy, the factorof risk control ability, the factor of profitability deeply. Based on the analysis above, thelast chapter put forward the conclusion and solutions, which is the factors influencing thebank competitiveness include scale, profitability,risk control and operation capacity.The feature and innovation of this paper is mainly reflected in following aspects.First, by arranging the former research achievement and absorbing the experiment, weput forward the own understanding of bank competitiveness. Second, trying best to selectthe indicator comprehensively and raise the conclusion systematically. Last, it can use thelesser factor to describe the connection between various indicators through factoranalysis and SPSS. The deficiency of this paper is mainly reflected in the following aspects. Firstly, dueto my low knowledge level, the understanding of the competitiveness theory has notreached a high level. Secondly, the indicator selected is not comprehensive. Thirdly, thispaper only covered the one year date, not concerned the variation of different years.