Research On Competitiveness Evaluation System Of City Commercial Banks-based On AHP

City commercial banks is the important and special component of Chinese bankingsystem.Its predecessor was urban credit cooperative bank established in1980s，whichprovides financial support for small and medium-sized enterprises，and pave the way for thelocal economy. From the early1980s to the1990s，the urban credit cooperatives banks haddeveloped up to more than5，000around the country. However，with the development ofChinese financial reform，urban credit cooperative banks gradually appear many problems inthe development process. So urban credit cooperatives banks reformed and became the citycommercial banks.In the new situation the increasing domestic financial competition, the interest rateliberalization， the entry of many foreign banks. How to improve the self-development abilityof competitiveness becomes major issue in the front of all kinds of commercial banks.Innovation of the traditional appraisal system and establishment of a modern commercialbank appraisal system have became more necessary an far-reaching significant to evaluate thecompetitiveness of domestic commercial banks. At present，there is a great gap betweenChinese banks and foreign banks in terms of capital structure，management level and so on.，It’s particularly important to cultivate its own competitiveness for Chinese city commercialbanks in order to break out in the fierce competitionAHP is a simple，flexible，practical and multi-criteria decision-making method. The basicprinciple of AHP to solve problems is dividing it at first and integrate it then. This methodmakes subjective judgments collated and integrated，so that the qualitative analysis andquantitative analysis can be combined efficiently， which satisfies the ultimatedecision-making programs quantitatively.This argument outlines the background of Chinese financial reform and development atfirst，and then draws on the general theory of the competitiveness of enterprises and research results on the competitiveness of enterprises in other industries. After that it combines thespecial nature of Chinese city commercial banking，to analysis Chinese city commercialbanks competitiveness index evaluation system by use of Analytic Hierarchy Process. You canclearly see through the various indicators of the competitiveness evaluation system of citycommercial banks. According to them， city commercial banks can focus on the beneficialpart and continue to cultivate a competitive advantage in the competition. Meanwhile，it hasimportant significance for city commercial banks in China to strengthen its managementpower，to standardize the operation，and to improve the corporate governance structure.