Study of Evaluation on Competitiveness of City Commercial Bank of Shandong Province
|School||Ocean University of China|
|Keywords||City Commercial Bank Competitiveness X-efficiency EVA method|
Three decades after reforming and opening to the outside world,especially the ten years after joining the WTO, China’s financial sector experiences great changes and has been tests in complicated financial market. At present, it has build a Competitive, complementary and coordinated modern bank system including State-owned Commercial Banks,Policy Banks, Joint-stock Commercial Banks,City Commercial Banks,Rural Commercial Banks,Rural Corporation Banks,Credit Cooperative Associations and Foreign Banks.In the middle 1990’s, city commercial banks set up on the basis of urban credit cooperatives.It is the result of central financial authorities rectifying urban credit cooperatives and resolving the local financial risks. Over the past 15 years, city commercial banks has experienced sprout, expand, integrate and standardize stages of development, and has become an integral part of the banking system. Although the absolute share of city commercial bank market share is relatively small, its overall development speed is one of the fastest growing force in the banking sector in recent years.It has very important significance to study the status of City Commercial Bank’s development.As the second largest province of the Chinese economy, Shandong Province plays an important role in the Bohai economic circle. Shandong Province has 14 city commercial banks, which ranked the first in the country, the operation of these banks are among the best of all provinces. ’ Shandong Peninsula blue economic zone ’ is the first approved national development strategy of ’12th Five-Year Development Plan ’ .Good economic environment and policy support are the favorable conditions for the development of city commercial banks. The steady development of city commercial banks will also provide strong financial support and comprehensive financial services for regional economic development and the implementation of the national strategy. Analysis on competitiveness of City Commercial Banks in Shandong province has a strong practical significance.This article is divided into six main parts, The first two sections describe the current status of Competitiveness study by domestic and foreign scholars and competitive connotation of commercial bank. Competitiveness of commercial banks indicates the ability of designing and providing customers with products they demand and obtain benefits in a particular macroeconomic situation and the ability of beating their rivals to win Markets and customers and maximizing the value of investors.The third part discusses the current situation of the development of city commercial banks in Shandong Province, and makes SWOT analysis for its Internal and external environment,which indicates that the main opportunity lies in the development of a stable macro-financial environment and a strong national policy support; main advantage is the relative sound governance structure, geographical advantages and operational flexibility; threat lies in the intense competition within the industry and the low level of market acceptance; the main disadvantage is that weak risk control ability and the low proportion of personal business and products characteristic is not obvious.The fourth part selected 8 sample banks and analysed the general competitiveness, potential competitiveness and environmental competitiveness for them, and then we used EVA method to make competitive evaluation on the empirical analysis part. The results indicates assets scale, return on equity ratio, liquidity ratio, bad loan rate, the cost to income ratio, geographic features, foreign strategic investors is the main influence factors for city commercial banks’ competitiveness.In fourth sector, we gave three development proposals about risk control, financial innovation and development strategy according to the specific problems of Security management, innovation and development bottlenecks for city commercial banks in Shandong province.