Competitiveness Research of Chinese Listed Commercial Banks Based on Factor Analysis

Abstract

Banks are the main body of the modern financial industry and the hub of the national economic. The competitiveness of banks is one of the important symbols that reflect the comprehensive strength of a country. With the acceleration of China’s financial reform process and the further easing of market access in the financial industry, commercial banks in China will face fiercer competition from foreign banks. This paper selects the annual report data of 16 listed commercial banks in China from 2012 to 2016, and empirically analyzes the competitiveness of these banks in terms of profitability and provisioning ability with the use of factor analysis. The results show that the comprehensive competitiveness of large state-owned commercial banks is higher than that of joint-stock banks and city commercial banks. And, joint-stock commercial banks and city commercial banks are better than state-owned commercial banks in terms of liquidity management capability and growth capability. Based on the analysis results, all banks can clearly realize their own advantages and disadvantages and take appropriate measures to improve their own comprehensive competitiveness and innovative ability.