The Structure Of Financial Innovation And Core Competitive Power Of The State-owned Commercial Banks

Due to the influence and buden of long-term planned economic pattern, it is getting hard for state-ownedcommercial banks in China to keep up with the pace of the whole economy. With China's entry into the WorldTrade Organization, the competition between domestic and international banking sector, consequently, will becomemor rigorous. Under such circumstances, a problem urgently needs considering is how state-owned commercialbanks can absorb and adopt west prevailing theory and paractice concerning financial innovation, and then combine them with China's financial situation, until eventually structure innovation mechanism aiming at achievign corecompetition in the long run.Through reviewing foreign theoretical contentions and consequent practice regarding financial innovation,thethesis studies how to carry out innovation activities for state-owned commercial banks to structure their corecompetition, gives crieria to test commercial bank's core competition, and points out the ways in which financialinnovation affects commercial bank's core competition.In the second part, through comparisons among state-owned commercial banks, world-famous giant commercial banks and domestic emerging joint-equity commercialbanks in their respective core competition, the thesis indicate that the state-owned commercial banks are facing a heavy pressure to build their core competition as promptly as possible. Meanwhile, through analyzing the presentcondition and the trend of China's financial innovation in the future, the article provides some ideas ofmacroeconomic and financial environment around the four banks. The last part puts forward the measures, i. e. carrying out innovations in system, management, business, technology, human resource and ideologyin order to build and stabilize the state-owned ocmmercial bank's corecompetition.