Research On The Competitiveness Of China's City Commercial Banks

The financial industry is the most active part of the entire market,especially since 2012,it has received the attention and attention of various countries,and is at the center of the entire national economy.The financial industry is an industry with a strong cycle,under the background of the current interest rate liberalization,The traditional profit model in which commercial banks use the net interest margin as the main revenue has been greatly impacted,and the traditional commercial bank operating model is difficult to sustain.In addition,the development of internet finance has shaken the individual customer base of commercial banks,and both the capital end and the asset end face pressure.The traditional commercial banking system is increasingly difficult to meet the needs for change and innovation.In the face of the ever-increasing financial competition and cruel market survival rules,the sustainable development of China's urban commercial banks in order to maintain a stable and consistent future,its future outlet and hope lies in how to maximize their own advantages.In addition to the small and flexible city commercial banks,the best card is localization.Many city commercial banks have a good market share and brand awareness,and they often know more about local companies and residents than large banks,and they can also adapt to local conditions.It is also able to launch featured products and services based on local conditions.If localization and specialization can be done to the extreme,the future of city commercial banks may not be so bleak.The paper adopts factor analysis to conduct a comprehensive,objective and in-depth analysis of the competitiveness of China's urban commercial banks.By selecting 72 city commercial banks as sample banks,an evaluation index system for city commercial bank competitiveness is constructed.The index system includes risk control capability,profitability capability,liquidity level,bank scale level,financial innovation capability,and company system construction.In terms of capabilities and strategic planning capabilities,factor analysis of sample banks was conducted using spss software,and finally a comprehensive score was obtained for each city commercial bank,ranking the sample banks from the highest to the lowest.From the empirical results,we can see that in terms of single factors,the eastern city commercial banks performed very well in terms of profitability and financial innovation,the central city commercial banks performed generally in all indicators,and the western city commercial banks paid more attention to risk control and capital flow.In terms of comprehensive factors,the overall competitiveness of urban commercial banks is continuously improving.The competitiveness of urban commercial banks in the eastern region is the strongest,ranking top,and there is a trend that surpasses that of joint-stock commercial banks.The competitiveness of commercial banks in central cities is higher than that of the western part,but Urban commercial banks in the western region have a strong potential for competitiveness.Finally,based on the results of empirical analysis,this paper puts forward corresponding strategies and suggestions on how to improve the market competitiveness of China's urban commercial banks.This will undoubtedly have important practical significance for the development of urban commercial banks.