Research On Competitiveness Of City Commercial Banks In Central China

In the past year, the global economy continues to recover slowly, the growth rate of the major emerging economies slowed, while China’s economy has seen steady progress, steady for the good momentum of development. Banking faces the reform of interest rate, Internet banking, diversification of financial institutions and other "new normal" in the process of developing. Therefore, the study of overall competitiveness of the city commercial banks in central China has very important theoretical and practical significance. The central region is the hinterland of China,and accelerating the development of the central region can improve the competitiveness of China. The city commercial banks in the central region have developed quickly in recent years, so in this paper, we mainly study the city commercial banks in the central region, focusing on their overall competitiveness.This is the need of the construction of the theory about commercial banks, is to deepen the reform in the financial system, it is also the needs of the survival and development of city commercial banks. And currently the relevant study of City Commercial Banks in Central China is not so much.China’s urban commercial banks have gone through the following three stages of development: urban credit cooperatives phase(1979 to 1994), the initial transition phase(1995 to 2002), the reform of the acceleration phase(2003-present). The central China city commercial banks are basically gone through three stages of development. Through the studies of history and development of city commercial banks,we found in Central China city commercial banks, although the development is faster, their ability to resist risks significantly is not better than large commercial banks, they subject to fluctuations in the economic cycle and the changes of market environment.Through factor analysis of competitiveness of city commercial banks, we compared commercial banks in different regions. We extract liquidity and safety, market power,public indicators of potential core competitiveness, profitability and so on. A comprehensive analysis of various indicators, we found levels of development in different regions of the city commercial banks have adopted different strategies, the difference is obvious, which is economic development in different provinces of the central region concerned. In comparison with other areas of the city commercial banks, the competitiveness of city commercial banks in the central region has obvious advantages, which is related with the implementation of national policies in recent years.Referring to domestic and international competitiveness evaluation index design, we compared the comprehensive competitiveness of the different types of commercial banks, we studied eight different types of commercial banks, selected indicators including actual and potential competition, and the data is from each Bank Annual Report in the last three years. Compared with other types of commercial banks,central China’s city commercial banks have stronger competitive reality, but its potential competitive is weak, which is mainly due to the help and support of local government, the natural advantages of regional banks and reform measures in recent years. And the reasons for weak potential competitive are mainly that, imperfect corporate governance, lack of business innovation, low product technology content,irrational business structure and so on.For the situation that the development of City Commercial Banks in Central China is uneven, real competitiveness is relatively strong, and potential competitiveness is weak, we have specific measures to enhance the competitiveness of city commercial banks in Central China: to take full advantage of its own, having clear positioning,keeping characteristics; focusing on the introduction and cultivation of talents,strengthening IT infrastructure; strengthening financial innovation, developing intermediate business; strengthening regional exchanges and cooperation.