Comprehensive Competitiveness Evaluation of China’s Four Big State-owned Banks——Fuzzy Comprehensive Evaluation Based on Analytic Hierarchy Process

Abstract

According to the latest ranking of TOP 1,000 World Banks 2020, the leading position of China’s four major banks have increased over their US counterparts: Industrial and Commercial Bank of China (ICBC) topped the list, followed by China Construction Bank (CCB) (No. 2), Agricultural Bank of China (ABOC) (No. 3) and Bank of China (BOC) (No. 4). Due to the influence of COVID-19, banks will come under more pressure as the result of the fiercer competition between them. Although the influence of Chinese banks in the world has increased, their comprehensive strength still needs to be improved. However, at present, there are relatively few academic evaluations on the comprehensive strength of Chinese banks, and the evaluation system is not perfect enough, and the evaluation indicators are not plentiful enough. Therefore, this paper analyses China’s four major state-owned banks’ data from 2015 to 2019 and establishe a fuzzy comprehensive evaluation model based on the analytic hierarchy process. The final conclusion that is drawn by this paper is about the ranking of these four banks’ comprehensive competitiveness: the strongest is Industrial and Commercial Bank of China, followed by China Construction Bank and Bank of China, and the weakest one is Agricultural Bank of China. The evaluation systemof this paper verifies the rationality of the international ranking and has important reference significance for banks to understand their own status and enhance their comprehensive competitiveness.